Debt Management Plan
What is a Debt Management Plan ?
Debt Management Plan offers a short term solution if you need a little breathing space to get back on your feet. It is an informal agreement that can be arranged on your behalf with your unsecured creditors to reduce your monthly payments. The reduction in your expenditure will help you take better control of your finances. Unlike an Individual Voluntary Arrangement, a Debt Management Plan does not involve a legally binding contract, and so it can offer you flexibility if your circumstances are likely to change.
Who is Debt Management Plan for?
If you feel your debt problems are short term, or you could do with reducing monthly outlay, this could be the way to go. It’s ideal if your debt is less than £10,000.
Is Debt Management Plan like an IVA?
No. There is no contract, just an informal agreement with your creditors which means you will still be liable to repay your debt in full and they could still demand full payment in the future.
Reductions in the payment amount usually increase the time to becoming debt free. In contrast an IVA not only reduces payments but can often clear a percentage of your debt completely.
Will the interest and charges be frozen, just like an IVA?
Unlike an IVA, we can’t promise that your creditors will freeze interest charges, meaning charges may go on increasing as you repay the debt.
We will of course do our best to agree a freeze and ensure that demands for payments are stopped completely, making your debt management less stressful.
So, is a Debt Management Plan my best solution?
If you are sure that you will be able to manage the new levels of payments and understand that interest and charges may still apply, then a debt management plan could be for you.
Use our Confidential Online Chat to find out more.
We’re certain that one of our debt solutions will work for you.
Call our friendly team on 0800 0329 359 or or use our Confidential Online Chat - we will discuss the best solution for your circumstances, explain our fees clearly, and explain how we can help you finally say 'goodbye2debt'.
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