No, a Debts Management Plan is not a loan. Instead it is a way of consolidating your repayments into one affordable monthly payment without any further borrowing.

There is no public record of a Debts Management Plan, so it is up to you who you choose to tell.

Yes, your credit rating will be affected in a Debt Management Plan as you will be breaking the original terms and agreements with your creditors. But if you have been missing your monthly payments or have defaults against you then you will already have a poor credit rating.

Secured debt works against the assets that you own, so if you fail to keep up on repayments then these may be at risk. Unsecured debt includes credit cards, store cards and personal loans.
A Debt Management Plan can only include unsecured debts. If you are unsure whether or not your debt is secured, please get in contact as one of our debt advisors will be more than happy to see if you can include it in a Debt Management Plan.

The best way to find out if you are eligible for a debt management plan is to call our expert debt advisors on 0800 0481 777. Here are some of the basic debt management criteria, as used by DebtsManagement.co.uk:

You are struggling to make repayments.
You have debts less than £15,000.
You have three or more creditors.
You can commit to making a reduced payment.