A debts management plan is an informal agreement between you and your unsecured creditors, where you agree to make a smaller monthly payment towards your debts. The amount you need to pay is based on what you can reasonably afford after deducting your essential outgoings.
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 …