How To Take A Payment Break From My Debt Management Plan?
Can I take a break from my debt management plan?
A debt management plan is designed to make your unmanageable unsecured 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 towards your debts management plan for a month or two. In this case, you may be able to take a short break from your debt management payments – as long as your lenders agree.
For the purpose of this article, we’ll assume your debt management plan has been arranged with the help of a debt adviser or debt management company – if you arranged your plan by yourself, you’ll need to contact each of your lenders directly to discuss a payment break.
How To Take A Payment Break From Your Debt Management Plan
If you’re struggling with your finances and you think you need a break from your debt management plan, contact your debt management provider 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.
Whether or not you can take a payment break 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 struggle to manage any repayments for the longer term, however – for example, if your essential outgoings rise significantly – your lenders may refuse a payment break, in which case you may need to start looking at alternative options for dealing with your debts, such as bankruptcy. What ever you do always stay in touch with your finance provider – do not ignore them as it with be at your peril.
Your thoughts, experiences and comments about taking a break from your debt management plan are welcome below.