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DEBT MANAGEMENT PROTECTION POLICY TO KEEP CLIENTS’ HOPES AFLOAT THROUGH TURBULENT TIMES TO COME – PAYMENTCARE.CO.UK OFFERS AFFORDABLE LIFEBELT

THE LONGEVITY – and ultimate success - of debt management plans could be greatly increased with the protection of a new insurance-backed guarantee policy offered to debt advisers from stand-alone payment protection insurance Paymentcare.co.uk.

“2008 is not going to be an easy year for anyone – for those already struggling with debt, the debt management industry trying to help them and the firms on which their clients rely for their income,” says Paymentcare.co.uk managing director Shane Craig.

“By backing up clients’ ability to maintain the terms of their debt management plans with an affordable insurance policy, debt management companies are much more likely to see plans reach the desired conclusion and maintain levels of business.”

As UK debt continues to spiral out of control – £1.4bn at the end of November* - the numbers of consumers turning to debt management plans is expected to grow, but it could be one step forward, two steps back if they are unable to maintain their agreement because they lose their income.

Paymentcare.co.uk’s Debt Management Policy is an insurance-backed guarantee available to debt management companies looking to protect their client’s ability to continue to make payments to creditors should they lose their income through illness or unemployment.

The policy works in a similar way as mortgage payment protection insurance but the premium is paid for by the debt management company rather than the client.

Premiums are just £3.50 per £100 of monthly repayment required by the debt management plan, so if the client has agreed to pay creditors £200 per month, the monthly premium payable by the broker will be £7.00.

“Crucially for clients who have forfeited any claim to their disposable income, when making a claim the benefit is paid directly to the debt management company,” says Craig. “This ensures that the lengthy process of chipping away at their debts is not derailed by the temptation to use the benefits themselves.”

Debt management companies who would like to find out more about this extra added benefit protection for their clients should contact Paymentcare.co.uk on 0845 402 4088.

* Credit Action 1 January 2008