Debt Management
Debt management is an informal but tailored plan based on your individual needs to help you get out of debt. Once on a debt management plan with Hanover Sterling you will only have to make a single payment each month at a rate which you can afford which will then be distributed among your creditors.
If you genuinely cannot afford your current monthly payments, we can negotiate with your creditors on your behalf to reduce your payments, often freezing the interest and charges, leading to a swifter repayment of the debt and relieving you of time and stress.
Because a debt management plan is an informal arrangement it is totally flexible so if your circumstances change you may raise or lower your payment accordingly.
We keep your plan under regular review and, if we believe that an alternative solution has become available, we will tell you about it, so that you can make an informed choice as to what you want to do.
Debt Management Questions
What is debt management?
Debt management is an informal arrangement that enables you to consolidate your debts into a single and affordable monthly payment. This payment is then paid to the debt management company who then distribute the payment between your creditors.
This allows you to easily manage essential bills such as your mortgage, rent, council tax and other living expenses.
How much will I have to pay?
This will depend on the amount of debt and your net income. It's important to keep up with your regular monthly payment to Hanover Sterling, or your creditors may cancel the arrangements we have made on your behalf. We will work out an affordable monthly payment, based on your income and expenditure. Minimum payment we can accept is £80 per month.
How long will the plan last?
This will depend on the total amount of debt and your regular payment. Because most of the time the interest on the accounts is reduced or frozen, this often leads to a swifter settlement of the debt.
Will my employer be approached?
No. We only speak to your creditors and we don't need to speak to your employer or make them aware of any financial situation you have.
How do I know I'm getting the best advice?
We are an extremely ethical company licensed by the Office of Fair Trading, and as we are a total financial solutions company with a wide range of products available, we will advise according to your current situation.
How do I know my debts are being paid?
We issue a monthly statement showing all transactions on your account and payments to your creditors. In addition to this, you will still receive statements from your creditors. As long as you send your payments to us, these statements will show who is being paid and by how much.
What happens to my credit rating?
Your credit rating may be affected, however, since you are experiencing some problems maintaining payments, your ability to borrow will already be impaired. Significantly, when you have finished the plan this will show on your credit file as all your debts being satisfied in full.
Are your services confidential?
Hanover Sterling Ltd is licensed under the Data Protection Act and Consumer Credit Act. We appreciate the sensitive, personal nature of the information we hold and pride ourselves in our extensive procedures aimed at safeguarding confidentiality.