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.
If you would like to speak to a qualified debt advisor, please contact debt release direct on 0800 0197465 or visit http://www.debtreleasedirect.co.uk
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.
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.
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