A Debt Management Plan allows you to consolidate your existing unsecured debt into one lower monthly payment without the need for any further lending. We will help calculate how much is affordable to the debt management plan based on your current levels of income and expenditure. You can benefit from lower monthly payments which are affordable to you.

You don’t have to worry about setting this up with your creditors as there are specialist debt management companies, such as DebtsManagement.co.uk who can negotiate with your creditors to ensure that the debt repayments are affordable to you. All you need to do is make the single reduced payment to us and we will distribute these monies accordingly.

Having a debt management plan can offer some real benefits to you if you currently find it a struggle to meet your multiple debt repayments on time. You also don’t have to worry about dealing with your creditors as we will deal with these on your behalf as part of the debt management process. You should also take into account any considerations regarding the debt management process, for example  you will have to repay your debts over a longer period of time and not all creditors are willing to freeze interest or charges on your debt.

This is designed to give you just a basic overview of the debt management process and further detailed and personalised information about debts management, please fill out the Quick Enquiry Form for a FREE callback.

A Debt Management Plan is an informal agreement between you and your creditors. It allows you to repay your debt at a realistic level and shows your creditors that you are committed to repaying all of your debt, even though it may take you a little longer to do so. This type of plan can also allow you to avoid lengthy insolvency procedures too, such as an IVA or Bankruptcy.

If we help you decide that your circumstances are suitable for a debt management plan, we can calculate how much you can afford to repay towards your debt based on your income and expenditure. Debt Management Plans are often an ideal debt solution for those who feel as though they cannot afford their debts as they are tailored to what you can afford. During out initial phone call we will make sure that we account for all essential expenses, such as mortgage/rent payment, food shopping, utility bills, etc.

From here we will negotiate with your unsecured creditors and ask hem to accept reduced payments based on what we have agreed is affordable to you. Many creditors also agree to freeze or reduce additional interest and charges on your debt, although this cannot be guaranteed.

There are a number of benefits to a debt management plan too. If you go through a debt management company, such as DebtsManagement.co.uk, we will handle the negotiations with your unsecured creditors. You also don’t need to worry about phone calls and letters from your creditors as we can handle this as part of our debt management service.

Please be aware that this form of debts management is not suitable for everyone, and it is essential that you get professional debt management advice so that you are aware of all the possible debt solutions.

One of the main benefits of a debt management plan is that it can lower the minimum payment amount that you need to repay to your creditors on a monthly basis to a reasonable amount that you can pay. Once the debt management plan has been negotiated with your creditors, all you need to do is to make one payment to a debt management company, such as DebtsManagement.co.uk, and they will fairly disperse this payment as has been agreed.

A debt management plan could freeze any further interest or charges on your unsecured debt, but this cannot be guaranteed.

A debt management plan help makes your debts affordable on a monthly basis and means that you should be able to afford your priority debt repayments too. As your debts are affordable, you shouldn’t have to worry about missing repayments to your unsecured creditors meaning that you can look forward to a future where you are debt free.

The best way to see how a debt management plan can help you become debt free is to speak to one of our professional debt management advisors. They will take details of your any income and outgoings and will help to find you a debt free solution which is right for you.

Whether or not a debt management plan will work for you is dependant on a number of factors. A Debt Management Plan is not suitable for everyone and you may wish to consider other debt solutions, such as an IVA.

The best way to answer the question “Will a Debt Management Plan Work For Me?” is to seek expert debt management advice. We have a team of debt management advisors who can help advise as to which debt solution could work for you.

Will a Debt Management Plan Work for Me If….

A Debt Management Plan is most likely to work for you as a debt solution if you fit the following criteria…

• Your debts are under £12,000 so you are not suitable for an IVA.
• You are struggling to meet minimum payments on your debt and are looking to pay a reduced amount.
• You are not suitable for or would not feel comfortable with a debt consolidation loan.
• You can afford to pay £100 a month to your creditors.

However, a Debt Management Plan might not work for you as a debt solution if…

• You would be more suited to an alternative debt solution.
• You do not wish to damage your credit rating, but be aware that most debt solutions can damage your credit rating in some form or another.
• You do not think you could commit to making reduced monthly payments.

This article offers you only a glimpse as to whether or not a debt management plan will work for you. Please seek expert debt management advice.

Debt Management Case Studies

Mr K. Debt    £20,000      Was paying: £650/month
Now paying: £250/month

Mr K. has an income £1180 per month, and was managing payments until he split up from his girlfriend and had to move into new accommodation. This increase in living expenses meant that he has not struggling to payback his debt. He came to Debts Management who recommended a Debt Management Plan for him, as he didn’t have enough creditors to get accepted for an IVA. But now his payments are reduced to a manageable monthly amount he no longer has to worry about missing payments to his mortgage or secured loan.

Our Debt Management company will help you deal with your debts and we can arrange a debt solution for you, such as a Debt Management Plan or IVA.

We will negotiate with your creditors to reduce your monthly payments. Our advisors are trained to the highest level and they will guide you through your finances and help to find the right debt solution for you.

Expert Debt Help from a Debt Management Company

We would never charge for giving advice and if you are struggling with your debts and are worried about how to make repayments, it makes sense that you would seek expert advice about the best way to tackle these.

Don’t worry about having to deal with your creditors. If you agree to a Debt Management Plan or IVA through us, we will deal with your unsecured creditors on your behalf.

Debts Management can offer you further advice on your debts. No matter how big or small your debt is, we will do our best to find a debt solution to suit your needs.

Call our Debt advisors free on 0800 0481 777.

As well benefiting from making reduced monthly payments, some creditors will agree to a reduction, or even freeze, interest and other charges, which can stop your debts from increasing – ensuring that each payment made decreases the balance on your debt. However, this cannot be guaranteed.

How Much Debt Do I Need for Debts Management?

There is no certain amount of debt you need for a debts management plan, as it can cover an assortment of debt levels. They key issue is your ability to repay your debts as opposed to the amount of debt you owe.

A debts management plan allows those who can not afford the minimum required payments to make a lower and affordable monthly payment towards their debts. This could be because your debts have grown too large and you can no longer afford the repayments, or if your income has dropped.

Debts Management Plans offer a certain degree of flexibility and can change dependant on your circumstances. For example, if your income is reduced, you may be able to have your payments reduced so that they remain affordable. Alternatively, if your income increase you can have your plan changed so you can afford more.

I have high levels of debt, should I get a debts management plan?

A debts management plan is designed for those with lower levels of debt, typically under £15,000. If you debt levels are higher than that, then it may be worth considering an alternative debt solution.

An IVA (Individual Voluntary Arrangement) can reduce your monthly payment too. An additional benefit over a debts management plan is that you only make repayments for a typical period of 60 months. On completion of the IVA all unpaid debt will be written off.

For more information about either of these debt solutions, we would recommend that you seek professional and ethical debt advice. DebtsManagement.co.uk can offer you further information about either of these debt solutions. Call now on 0800 0481 777.

Call our Debts Management advisors on freephone 0800 0481 777.

Types of Debts We Can Help With:

• Unsecured/personal loans
• Credit cards
• Store cards
• Overdrafts
• Catalogue debt
• Hire purchase (if you no longer have the vehicle)
• Disconnected mobile phone debt
• Doorstep lenders

Types of Debts We Cannot Help With:

• Certain student loans
• Child Maintenance payments
• Secured debt – such as a secured debts consolidation loan, car loan if secured against the car, home loans or a mortgage.

There are a number of firm differences between the two which you need to be aware of:

* Will my debt be written off?
The main advantage of bankruptcy is that your debt is written off and you can start again from scratch with your finances. But there are some debts which cannot be written off and the bankruptcy order will stay on your credit file for six years.

A Debt Management Plan does not write off any part of your debt but reduces the amount that you need to pay on a monthly basis so your debts become affordable. However, you will have to repay your debts over a longer period of time.

*Future considerations
Bankruptcy comes with a number of considerations which could affect your future, therefore the decision to make yourself bankrupt should be taken very seriously For example, certain professions are closed to bankrupts and you may find it extremely difficult to get accepted for credit in the future.

Debt Management Plans will affect your credit file, although this may already be damaged if you have missed payments to creditors on a regular basis. But it is an informal agreement and therefore should not hinder your professional career.

* Type of Agreement.
Bankruptcy is a legal insolvency procedure, whereas Debts Management is an informal agreement between the debtor and the creditor.

Remember that an IVA could help you to avoid bankruptcy if you owe more than £15,000 worth of unsecured debt.

To discover more about the differences between Bankruptcy and Debts Management, call our debts advisors today on FREEPHONE 0800 0481 777 or fill out the Quick Enquiry form for a callback.

Bankruptcy is for unsecured debts only. The decision to apply for bankruptcy is serious and should only be considered as a last resort and then only if you are unable to obtain an IVA or an alternative debts solution.

* Amount of Debt Written Off
A Trust Deed can write off unaffordable debt. The amount of debt write off is dependant upon your personal circumstances, so please call our advisors now on 0800 0481 777 for further Trust Deed information.

A Debt Management Plan does not write off any part of your debt but reduces the amount that you need to pay on a monthly basis so your debts become affordable. However, this does mean that you will have to repay all of your debt over a longer period of time.

* Type of Agreement
A Trust Deed is a legally binding agreement between the debtor and the creditor. Once a Trust Deed has been approved the creditor cannot change their mind about the agreement.

Debts Management is an informal agreement between the debtor and their unsecured creditors. The creditors do not have to accept the offer and could, in theory, change their mind at any time.

* Amount of Debt Owed
A Trust Deed can only be arranged if you are a Scottish resident with over £10,000 worth of unsecured debt. If you have less than this amount it is likely that you will only get accepted for a debt management plan.

Remember that a Trust Deed is only available to those who live in Scotland. If you are a resident of England, Wales or Northern Ireland then an IVA is your Trust Deed alternative.

To discover more about the differences between a Trust Deed and Debts Management, call our debts advisors today on FREEPHONE 0800 0481 777 or fill out the Quick Enquiry form for a callback.

Terms & Conditions Apply. A Protected Trust Deed (PTD) is for unsecured debts and residents of Scotland only. It should only be considered in extreme circumstances as failure to adhere could result in Sequestration (The Scottish legal term for Bankruptcy). Debt write off applies only to where the PTD is agreed by your creditors and you have completed the, typically, 36 month term. Once your PTD commences, your monthly contribution is fixed and there are no additional fees on top. The fees, paid by your creditors, are taken out of your monthly contributions to your PTD and will be notified to you in advance. Some homeowners may be required to remortgage.