How Southern tree Debt Management Plans work

Debt management is an effective way of consolidating your debts in a single affordable monthly payment without the need of obtaining more credit such as debt consolidation loans.

There are no credit checks involved and it starts by consulting your debts with a debt management advisor who will work out how much your outgoings are compared to your income. Here the debt management consultant will be able to work out your “Disposable Income” this is an amount left over after you have paid your household bills such as Mortgage, rent , Utilities, Council tax etc;

Once a deposable income has been established, you will be sent out a pack containing details of your debt management plan. When this pack is signed, completed and returned. You no longer make direct payments to your creditors.

• Southern Tree ltd will act as your debt management company and will take over all the negotiations and enquiries relating to your debts.
• An offer of payment will be set up with each of your creditors detailing how much they are going to receive out of your monthly payment.
• Furthermore interest will be negotiated on all your accounts.

 This is excellent for those who are paying some creditors and not others, as your single monthly payment to southern tree will cover all your debts. You will set up a single monthly payment by standing order or direct debit to Southern Tree. Each month Southern Tree ltd then distributes funds to all your creditors.

Your obligations

You must send any correspondence received from your creditors to Southern Tree via the provided envelopes.

You must inform Southern Tree if your circumstances change ( this means although we have established how much you can afford to pay each month , if your circumstances change you can further reduce your monthly payments to reflect your circumstances)

If informed you must change your bank accounts. If you owe money such as loans or overdrafts to your existing bank then it’s important you move your account to a bank where you have no outstanding credit. This is because whilst payments are being making to these creditors via your debt management plan. They banks can still divulge into you accounts and help themselves recover your monthly payment.

You must not apply for further credit even if it’s debt consolidation loans. You have to understand if Southern tree is negotiating with your creditors then your creditors are being told you’re in financial hardship. If you apply for loans then you are contradicting this fact