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.