Getting into debt can happen for a number of different reasons, such as loss of job or breakdown of a relationship. But no matter what the reason why you are struggling with your finances, it is important that you take control of your debts as soon as you can.

Here are some simple ways to manage debts but we would always recommend that you seek professional advice. DebtsManagement.co.uk can offer you professional advice about how best to get your finances in order and if you would be suitable for one of our debt solutions, such as debts management.

1: Outgoings. One of the many reasons that people get into debt is because of lack of control over their outgoings. It is essential that you get your finances in order and work out where your money is being spent and how spot the areas where you can cut down your spending. One of the simple ways to manage debts it to record everything you spend on over the course of a month.

2: Cut down your outgoings. Now you are aware of how you are spending, it is time to cut down. Cut up your credit cards and avoid getting into more debt which is just too expensive in the long term. You don’t need to add to your debt, as monthly charges and interest payments only means that your debt will increase,

3: Work out a plan. Understand what debt you have outstanding and to whom you owe it to. This should make it easier to take account of where your money is going each month. You may find that your unsecured debt repayments are unaffordable when you include your essential living costs. If that is the case then move onto step 4…

4: Seek professional debts management help. There is no point struggling with debt alone. The current economic climate means that many more people are having to seek professional ways to manage debt in order to control their own debt management. DebtsManagement.co.uk are an ethical financial solutions company who offer a full selection of debt repayments meaning that there will be one suitable for you.

For more information about simple ways to manage debt and help from the experts, fill out the Quick Enquiry Form for a free callback from an experienced debt advisor.

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.

How Can a Debt Management Plan Help?

A Debt Management Plan can help you manage your debt by offering you one low monthly payment to all your unsecured creditors. Debts Management will work on your behalf to negotiate with your creditors to offer you a smaller monthly payment and perhaps get further interest or charges on your debt frozen.

This Debt Plan will help you manage your debts as you only make one payment to service your debt, regardless of how many creditors you have. As the payments to your unsecured debt will be reduced, you should feel less of a struggle paying your secured debt, such as mortgage payment or your unsecured priority debts such as your rent.

If you are eligible for a debts management plan, it can be an ideal way for you to regain control of your finances and reduce the stress from creditors who are asking for payments that you cannot afford.

Is there Another Way to Manage My Debt?

Although a debts management plan is a good way to get your finances back in order, it is not suitable for everybody. Debts Management have access to a number of leading debt solutions and we are confidence that we can find a way to help you manage your debt.

If you feel as though a debt management plan is not the right debt solution and you have debts over £15,000, then an IVA could be the best way to deal with debt. Not only will you benefit from reduced monthly payments, any unaffordable debt will be written off on completion of your IVA.  An IVA is only suitable for residents of England, Wales and Northern Ireland, but the Scottish equivalent is a Trust Deed.

If you are struggling to manage your debt then you might be thinking about bankruptcy as a solution to your debt problems. However you should always explore possible debt solutions before declaring yourself bankrupt, as there are long-term consequences which cannot be avoided.

Not sure if a debt management plan is the best way to manage your debt? Call our Debts Management team on freephone 0800 0481 777 for advice about our range of debt solutions.

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.

There are a number of ways which you can use UK debts management to your advantage. The right debt solution for you is dependant on your individual circumstances, and you should seek expert debts management advice before committing to any type of UK debts management programme.

Done in the correct way, a UK debt management plan can help you to decrease your monthly payments to your unsecured creditors. For a debt management plan, you can include a number of unsecured debts, such as personal loans, catalogue debts, store cards and credit cards.

UK Debt Management companies, like ourselves, can help you to deal with any issues that you are having with your debt worries. By reducing your unsecured creditor payments, many of our clients have found they can afford their priority debts much more easily.

UK residents (excluding Scotland) who have large amounts of debt may be eligible for an IVA (Individual Voluntary Arrangement). Like a UK Debts Management Plan, the debtor makes a reduced monthly payment to their creditors. However, unlike a debt management plan, an IVA only lasts for an average period of 60 months and any unpaid debt will be written off at the end of the IVA term.

There is not set criteria for a UK debts management plan, so UK debtors are best getting in touch with one of our dedicated debts advisors who will be able to offer debts advice and can arrange a debt solution which is designed to benefit your current financial circumstances.

If the question you want answered does not appear please do not hesitate to benefit from our free debt help, so that we can answer any questions you may have about Debt Management Plans.

Alternatively, please feel free to comment below with your Debt Management question and we will try to add it to our list of FAQs.

FAQ – Debts Management

Debt Management FAQ – Please click the link for a list of the most commonly asked debt management questions.

IVA FAQ – If you want specific IVA help, we have a section for that too! Please click the link for further information.

It is important to understand the difference between debts management companies and debt consolidation companies, so that you are in the best position to deal with your debts.

Debts Management Companies:

A Debts Management Plan is an informal agreement between you and your unsecured creditors which does not involve any further lending.

Debts Management companies will negotiate with your unsecured creditors so they accept your Debts Management Plan, thus allowing you to make reduced monthly payments. Some creditors can also waive charges and freeze interest, but this cannot be guaranteed.

With the Debts Management Plan, you will make one monthly payment to the debts management company and they will distribute these funds accordingly.

Debt Consolidation Companies:

Debt Consolidation is different to a Debts Management Plan. Although both can offer you a reduced monthly payment to your debt, debt consolidation means that you will take out a new loan which will effectively pay off your existing debts.

You should be able to make a single reduced payment to the debt consolidation loan. Also many debt consolidation loans are secured which means you should be able to benefit from a lower interest rate in comparison to unsecured debts. However, if the debt consolidation loan is secured against your home, you should make sure that the loan is affordable as missed payment could lead to repossession.

Debts Management or Debt Consolidation Companies?

Now you know the basics about the two debt solutions, you may still be wondering whether it is a debts management or debt consolidation company that you should turn to.

It is important to remember that a debt consolidation loan is not for everyone. As they are often secured against a property, you will be excluded if you are a tenant. Also, as it is secured, if you fail to make repayments then your home could be repossessed by the lender.

If your payments are unaffordable and you do not wish to take out a further loan, then a debts management plan could be the right debt solution for you. Making lower monthly payments to your unsecured debts should mean that any secured repayments are more affordable to you.

Debts Management or Debt Consolidation Loans are not the only debt solutions available. And those with high levels of unsecured debts may want to consider an IVA which allows a percentage of unaffordable debt to be written off on completion of the agreement.

The best way to find out if whether a debts management or debt consolidation company could help you is to seek professional debts advice. DebtsManagement.co.uk have a team of specialist debts advisors who could help you either with a debt management plan or a debt consolidation loan.

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.

• Type of Agreement.
  An IVA is a legally binding agreement between the debtor and the creditor. Once an IVA has been approved then the creditor cannot change their mind and pull out of the plan.
  Whereas a debt management plan is an informal agreement and creditors do not have to accept your offer.
• Debt written off?
  Only an IVA can write debt off, and it is not possible to do so with a debts management plan.
• Amount of debt.
  An IVA can only be arranged if you have over £15,000 worth of debt. If you have less than this amount it is likely that you will only get accepted for a debt management plan
• Flexibility.
  A debt management plan is the most flexible of the two, and your payments can be changed in accordance to your personal circumstances. But an IVA is a legally binding process and you must commit to making that payment level each month.

Terms & Conditions Apply. An IVA is for unsecured debts only, and should only be considered in extreme circumstances as failure to adhere to the IVA agreement could result in bankruptcy. Debt write off only applies when the IVA is agreed by your creditors and you have completed the, typically, 60 month term. Once your IVA commences, your monthly contribution is fixed and there are no additional fees on top. Our fees, paid by your creditors, are taken out of your monthly contributions to your IVA and will be notified to you in advance. Some homeowners may be required to remortgage.

If you are asking yourself the question “Am I in Debt?”, chances are that you are struggling with your finances. If this is the case then you are not alone, millions of people in the UK have mounting debt levels.

Once you spot the signs of being in debt, it is important that you seek debts management help as soon as possible. Hiding away your debt problems will only mean that they grow each month with the interest and charges added.

Debts Management can offer you free information and can help you manage your debt more efficiently. Contact our debt advisors today on, 0800 0481 777.

3 Signs showing you may need Debt Help

1: You worry about the postman arriving. If you are worried about your morning post because of unpaid bill reminders, you could need debt help. It is important to tackle them as soon as possible before your debt gets out of hand.

2: You are behind on your priority debt payments. Priority debts include mortgages, council tax and utility bills. These class as priority debts as failure to pay these bills mean that you lose the service. If you are struggling in this way, you need a way to make your unsecured debt more affordable. To find out how, get in touch with Debts Management today on 0800 0481 777.

3: You only make the minimum payment to your debts. You may feel that making the minimum payment to your debt means that you are in control. But your payment will probably only be covering the interest charge, so you could be paying for your debt for another 40 years!

Help! I am in Debt and Need Debt Help…

The first step of solving a debt problem is coming to terms with your debt levels and seeking a solution. You have made the first step here, so let Debts Management do the rest for you.

We have a team of leading debt advisors who will go through your finances and find a solution to your debt problem, such as debt management, IVA or  bankruptcy.