A Debt Management Plan is an informal agreement between you and your unsecured creditors. This type of debt management is designed to reduce your monthly payments to your unsecured creditors which can help you with your debt management skills. Interest or charges on the debt may also be frozen but this cannot be guaranteed.

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.