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A high debt-to-income ratio or fundamental change of personal circumstances (unemployment, divorce or poor health) can mean that paying off debt at a rate that complies with the T&C's of a credit agreement is virtually impossible. Those in need of debt-free help regularly turn to a Debt Management Program because it becomes possible to repay the money owed at an affordable and sustainable rate.
Following a budgetary analysis, the intermediary will work closely with the client to establish a comfortable payment that can be made each month. Rather than making lots of different payments to creditors, a single payment is sent to the credit debt solution provider. They will then distribute the money to creditors on a pro rata basis.It is important to understand that not all types of debt can be included in the arrangement.