Debt ManagementTypically, debt management is suited to those with fairly low levels of debt. It offers a short term solution for people needing some time to get back on their feet or those struggling to manage their debt appropriately. Unlike an IVA it does not involve a legally binding contract. It is an informal agreement that will be arranged on your behalf with your creditors to reduce your monthly payments. Normally you are still obliged to pay your debt in full, so reducing your monthly payments may increase the length of the repayment. The reduction in your expenditure, however, should help you take better control of your finances. There is no guarantee that the interest and charges will be stopped therefore your debt may continue to increase. However, a debt management company should act on your behalf to negotiate this as well as making sure that you do not receive direct demands for payment. In summary:
If our experienced advisors establish debt management is the best debt solution for you, we will do the best to ensure that the monthly repayment figure is affordable to you. For more information on Debt Management, take a look at our Debt Management FAQs page. Back to top Other debt options > Debt Consolidation |
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It is an informal agreement with your creditors, generally most suited for low levels of debt