If something prevented you from paying your debt management plan payments for a short period, you may be able to take a break while you try to get back on top of your finances.
Am I Allowed to Take a Break From My Debt Plan?
A debt plan is designed to make your unmanageable credit card debt repayments affordable once again. It does this by reducing your monthly payments to a level you can manage.
However, if an unexpected expense or bill arises, you may find that you can't afford to pay anything for a month or two. In cases like this, you may be able to take a short break from your monthly payments - as long as your lenders agree.
For the purpose of this article, we'll assume your debt plan has been arranged with the help of a debt adviser or debt company - should you arranged your plan by yourself, you'll need to contact each of your lenders directly to discuss a payment break.
How To Take Arrange A Payment Break
If you're struggling wi th your finances and you think you need a break from your debt management plan, contact your debt company or debt adviser as soon as you become aware of this. They will discuss your situation with you, as well as the likely impact a payment break may have on the concessionary arrangements agreed with your lenders. Proof of your additional expense is likely to be required, so it's helpful to have this available.
Regardless of whether you can take a payment break it is ultimately down to your lenders. If they can see that you really are having debt problems and that it is only temporary, they may well accept a break in your payments while you try to get your finances back in order.
Long-Term Payment Breaks In Your Debt Management Plan
If it looks like you're going to find it hard to manage any repayments for the longer term, however - for example, if your essential outgoings rise significantly - your lenders could refuse a payment break, in which case you may need to start looking at alternative options for dealing with your d ebts, such as bankruptcy or an IVA. Whatever you do always stay in touch with your finance provider - do not ignore your lenders or finance providers as it with be at your peril and it's just not worth it.
Author and Writer Mark Aucamp has been supplying content and articles about MONEY ADVICE for a many years. Mark is skilled in providing MONEY Advice and information. Today's information is about DEBT MANAGEMENT PLAN http://talkmoneyblog.co.uk
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