First you need to opt for a debt advisor, as they will first come up with efficient ways through which you could save money on the basis of your budget. They will then help you carry out an assessment of your financial situation and debts by asking you a series of questions. The key agenda of following these questions is to get a more accurate picture of your finances. Keep in mind that they must believe in establishing a trustworthy relationship with you so that you can be completely honest with them upon the discussion of your finances to get the required help you need.
They use this information to calculate how much you can comfortably afford to pay each month out of your surplus income. Once this amount has been agreed with you, they ask your creditor to cease all charges and negotiate a different repayment schedule, the one which will be easier to manage every month. In most cases, creditors are happy to agree to the plans because they know from their experience that such plans are realistic and sustainable.
You then make a single monthly payment, all of which is distributed to your creditors on your behalf. It is important that the payment is made into your debt management plan on a monthly basis. Throughout the duration of your plan, your debt advisor should be constantly in touch with you so that you can have an experienced voice by your side in case of any issues from your creditor.
Your debt management plan must be reviewed at regular intervals to ensure that it still meets your ongoing circumstances. In case your financial situation changes, they will have the flexibility to renegotiate the payment terms on your behalf.