Sole Trader Debt | Debt Management
What is a Debt Management Plan?
A Debt Management Plan is an Informal Agreement between you and your creditors where you pay back your debts at a monthly rate that is affordable for you. If you are a Sole Trader and you are struggling to keep up with Debt repayments, entering into a Debt Management Plan could save your business.
The plan is flexible and your debt repayments are gathered into one flexible monthly payment and paid out to your creditors on a pro rata basis. You can arrange a debt management plan yourself or with an appropriate Debt Management Company who will be responsible for all correspondence and payments between you and your creditors.
Due to the informality of a Debt Management Plan you or your creditors can opt out of it at any time. You can arrange it as a temporary debt solution until you get back on your feet financially and your business is no longer at threat, or you can aim to have it as a more long term debt solution.
How do I arrange a Debt Management Plan as a Sole Trader?
By speaking to us at Business Debt Advice, we will determine whether or not a Debt Management Plan is the most suitable Debt Solution for you, your business and your circumstances. We will do a detailed analysis of your incomings and outgoings (daily living expenses) in order to determine what the best monthly payment would be for you to your creditors if you were to enter into a Debt Management Plan. The payments are then negotiated with your creditors and the Debt Management Plan is set in place.
Benefits of a Debt Management Plan
- Your monthly outgoings will be reduced.
- We can negotiate with your creditors to get interest and charges frozen.
- You will have just one easy monthly payment allowing you to forget about worrying and concentrate on your business.
- We can set up your debt management plan quickly and efficiently.
|
