Managing your debt and “Debt Management” look one and the same. However, in the financial parlance, they are very different. “Managing your debt” means ensuring you are in top of your debt payment schedule and you are in a position to pay off your debt every month. However, the words “Debt Management” means something very different. It means that you are not in a position to pay off your debt and that your total debt exceeds your disposable income after deducting a fair amount required for your living expenses.

It that is the case, the financial company managing your affairs may refer you for debt management. Abacus Finance would also do that but only post a detailed analysis of its client’s financial statements and hence the status of the same.

If the client’s debts far exceed the income levels, if the client has at least 3 creditors and if the client, post making that single payment to the debt management company which will be paid off to the creditors, can still make about 100 pounds a month payment towards his debts, only then the client is referred to the debt management program. Otherwise, the client is referred to other programs such as debt consolidation or bankruptcy proceedings.