Debt management: what happens if I miss a payment?

A debt management plan can be an excellent way to deal with unmanageable debt. By reducing your monthly debt payments to a manageable level, you can ensure all your costs are covered each month.

However, anyone`s circumstances can change - and if you miss a payment to your debt management plan, the situation can become quite serious. For that reason, you should take action at the first sign of problems.

Dealing with missed debt management payments

Before you do anything else, you should contact your lenders (if it`s a self-run debt management plan) or your debt management company (if you`re on a professional debt management plan) to explain the situation. In general, the sooner you can do this, the less serious your situation is likely to get.

Also, make sure that you pay as much as you can towards your debt management plan, even if it`s not the full monthly amount you agreed to. Your lenders are legally obliged to accept any payment you can give them, and not only will this show that you`re doing all you can, it will also mean you`ll have less to catch up on later.

Remember that a debt management plan is an informal agreement, and as such can be more flexible than some other debt solutions. If your problem is only likely to be temporary (e.g. you have had to deal with an unexpected one-off expense), your lenders may agree to a temporary reduction in your payments to help you get your finances back in order.

If the situation is likely to last longer (e.g. long-term illness that prevents you or a family member from working), you may be able to negotiate a longer-term change in your debt management plan to reflect your new circumstances. (Of course, repaying any debt more slowly will mean it takes longer to clear and may end up costing you more in total.)

You (or your debt management company) will need to negotiate this in much the same way as your original debt management plan, and as before, your lenders are under no obligation to accept the terms. If they don`t, you may have to consider an alternative debt solution.

Equally, if your circumstances have changed to the point where you can no longer see yourself repaying the debt within a reasonable period of time, you may need to consider another debt solution, such as an IVA (Individual Voluntary Arrangement).

If you`re struggling with your repayments and don`t know what to do, you can speak with one of our expert debt advisers today on 0800 195 2911 or click here and fill in the form to request a free call-back.

Related resources:

• Debt
• Debt management
• IVA
• Debt management services
• Debt management plan or IVA?
• Can debt management help me pay the bills?
• What services do debt management companies provide?
• Is debt management a good idea?
• Will debt management stop lenders` phone calls and letters?

Tags: debt, management, payment, payments, cant afford, cant pay, missed payment, miss payment, late payment, debt management advice, advice, help, debt management

Our initial advice on your best financial solution is free. Fees payable when continuing service is provided. Calls may be recorded for training and quality purposes.