• What is a Debt Management Plan?

• Debt Management FAQ's

• How do I get a Debt Management Plan?

A Debt Management Plan is a very popular method of paying any unsecured debts that you have.  It is a simple and effective way of combining your debts into one affordable payment that is right for you.  A debt management plan will in time stop creditor hassle you maybe under pressure from and stop the interest and charges you are paying on your debts.

As we enter into a recession most people are starting to feel financial strains, you may have been made redundant or had to take a pay cut. A debt management plan can help if you are struggling to make ends meet. Debt Management could be the right solution for you if you have unsecured debts of over £2000, can afford a monthly payment of £100 and have at least 2 creditors.

Getting started
A Debt Advisor will look at each individual case and go through all debts, income and expenditure.  An affordable payment will then be calculated to be paid by the debtor over a fixed period of time. Once agreed the debt advisor will then contact all creditors and set new arrangements in place, they will also look to get interest and charges frozen for the fixed term of the agreement.

Once the Debt Management Plan commences you will notice that the creditor hassle you have been receiving by either phone calls or letters will start to disappear leaving you less stressed.

Conclusion
Very little risk is involved with Debt Management Plans as it is an informal agreement between debtor and creditor and not legally binding. Your assets will be protected as they do not have to be declared unlike Bankruptcy where your home and assets are at risk. 

Conclusion
Debt Management can be a solution to your financial strain on a short term basis depending on how much you owe.  Once the Debt Management Plan comes to an end your credit file is marked as ‘All debts satisfied’ and you will free from debt and be able to make a financial fresh start.

How do I get a Debt Management Plan?