Debt Management Plan

What Is It?

A Debt Management Plan is an informal arrangement between you and your creditors which is not legally binding. It enables you to repay your debts with a regular payment you can afford. We will deal with correspondence from your creditors on your behalf; all you have to do is make one affordable payment per month and we’ll do the rest.

Do I Qualify?

You qualify for a Debt Management Plan if:

• You cannot meet the contractual repayments to creditors.
• You are able to make a regular payment to clear your debt.
• You have not qualified for an IVA (or Trust Deed in Scotland).

Advantages

• We will attempt to intercept all correspondence from your creditors
• We will attempt to freeze or reduce your interest payments
• Good option for people who can afford to make regular payments to their creditors and want an easy, hassle free way to pay

Disadvantages

• Some creditors may ask for a note to be put on your credit reference file to say you are on a Debt Management Plan. This will usually make it harder for you to get credit in the future.
• A Debt Management Plan requires long term commitment from you to pay off all outstanding debt which can take many years dependent on the amount of debt and disposable income. However, we will always look at other options to clear the debt as early as possible

Your 8 potential escape routes

• Debt Management Plan
• Full and Final Settlement
• Consolidation Loan
• Re-Mortgage
• Equity Release
• IVA
• Trust Deed
• Bankruptcy