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When going about their daily business, the employees at Release Money Group often remark on the number of people that are puzzled at the difference between debt collection and debt management.

As a quick explanation to help to educate our customers, here are the definitions of debt collection and debt management.

Debt Collection – Debt Collection is defined as a business that pursues payments on debts owed by individuals or businesses. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed.

Debt management – Debt Management or a debt management plan (DMP) is a repayment scheme which helps make unsecured debt repayments more affordable. Normally a third party debt management company negotiates with your unsecured creditors to reduce your monthly payments to an affordable level. The outstanding debt is paid back over a longer term but is not reduced.

A Debt Management Plan allows you to make a single, affordable, monthly payment to help you regain control of your finances. Our advisors deal with your creditors on your behalf, often freezing or reducing interest and charges and negotiating a simple and predictable monthly payment.

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Debt Release Direct will handle the letters and phone calls, arranging an affordable and timely payment plan for your unsecured debts which will save you time, pressure and money.

Is a Debt Management Plan right for me?

A debt management plan can be suitable for individuals who want to consolidate debts so that they will be able to pay their debts in full within a reasonable amount of time.

If you cannot afford to repay all of your debts, then ask for advice on IVAs (Individual Voluntary Arrangements), Full & Final Settlements or Bankruptcy. If you would like to speak to a Debt Release Direct advisor to discuss your debt consolidation options, you can call for FREE on 0800 019 7465.

What are the advantages of a Debt Management Plan?
You can manage your debt with a single, affordable monthly payment
Our experienced advisors will negotiate directly with your creditors on your behalf
Interest and charges can often be reduced or frozen
A Debt Management Plan is an informal agreement which you can cancel at any time
How does a Debt Management Plan work?

If you decide a Debt Management Plan is right for you, we will speak to your creditors and negotiate a debt repayment plan. Once this agreement has been reached, you will make a single payment to Debt Release Direct every month and we will handle the rest.

You receive a dedicated emergency telephone number and ongoing support and advice whenever you need it, and every month we provide you with a breakdown of receipts, costs, and exactly what each of your creditors have been paid.