You have the right to pay only what you can afford

Creditors cannot demand money needed for you and your family to live on but they will continue to send demands until someone shows them what you can realistically afford to pay each month.
Debt management

How it works
Debt management is really copying what the courts would usually do if someone is unable to pay their debts, without having to go to court.

Banks, Credit Card Companies and other lenders have the right to request a county court judgment against anyone who fails to pay their debts.

When you are in financial difficulties, the courts can request a statement of income and expenditure to calculate what can be paid towards your debts and order repayments to be made in accordance with what you can realistically afford to pay after essential day to day living expenses have been deducted.

Once this figure is calculated the interest is frozen and you would be expected to continue making the payments until the debts are paid in full.

Debt Management is an informal and flexible arrangement and can be changed in accordance with any change of circumstances you may have during the debt management programme.

The creditors usually accept the offer of reduced payments, because once it has been shown to them how much you can realistically afford to pay each month they know they would not be able to get any more by wasting time and money taking you to court

The Debt Management Programme more or less a copy of what the courts arrange without the need of any court orders.

It is an informal arrangement between a person who is struggling to keep up payments and the lenders.

You would be appointed a trained debt adviser who would negotiate with the banks, credit card companies or other lenders on your behalf to make one reduced monthly payment that you can realistically afford to pay and to have the interest frozen.

Once this arrangement is entered in to you will not need to have any further contact with the lenders, everything will be taken care of by the adviser, all you have to do is make sure that you keep up the payments.

If your circumstances change for the better or worse you should speak with your adviser who will let you know the best course of action to take.