There are no set rules regarding how long it will take to pay off debts with a debt management plan. Unlike an IVA which typically lasts for 60 months, the timeframe of a debt management plan is dependant on a number of factors.

Everyone is different, as your level of debt and personal financial situation will not be the same as anyone else.

For example, even if two people have the same amount of debt, you may both have different amounts of disposable income which will mean that you both pay off different amounts towards your debt. Even if you have the same amount of debt and disposable income, your debts could alter in interest rates therefore the person with the highest level of interest will take longer to pay off debts with a debt management plan.

This is why we tailor the debt management plan to you.

Pay Off Debts with a Debt Management Plan

With a Debt Management Plan, you only pay what is affordable after interest and charges have been deducted. You should be aware that because you are paying off debts with a debt management plan it will take you longer to repay your debts.

The best way to find out how long it will take to pay off debts with a debt management plan is to seek expert debt advice. Please contact one of our DebtsManagement.co.uk debt management advisors on 0800 0481 777.

Here are some ways you could pay debts off…

1: Pay off more than the minimum about of debts owed.
One of the fastest ways which you can begin to repay debts is to pay off more than the minimum amount of debt.

Only making the minimum payment to your debts (which could be between 2-3%) will only prolong the amount of time you will be repaying the debts and the credit card provider can reap the rewards of interest.

Pay as much as you can each month. This might mean setting yourself a stricter monthly budget, but try and throw any spare cash you have available at your debts. Ways to pay debts that little bit quicker could include bringing your own lunch to work instead of eating out or avoiding the temptation to ‘treat yourself’ to unnecessary items.

2: Know that there are debt solutions available.
Knowing that there are debt solutions designed to help you pay debts is a piece of invaluable knowledge, as believe that they will forever have to struggle to pay debts off or file bankruptcy. This is no longer the case as there are a number of debt solutions which can help you pay debts off:

Debts Management Plan – An informal agreement between you and your unsecured lenders. A Debts Management Company, such as ourselves, will negotiate with your creditors so you can make smaller monthly payments to your debts. Although it will take you longer to pay debts off, you should find that they are no longer a struggle on a monthly basis.

IVA – Like a Debt Management Plan, you can benefit from making smaller monthly payments to your creditors, but with additional advantages. An IVA allows you to make reduced monthly payments and at the end of the IVA, typically 60 months, you will be free from unsecured debt.

The simplest way to discover alternative ways to paying debts, is to get expert debts management advice. Our debts advisors are on hand to offer you further information about the range of ways you can pay debts off. Call today on 0800 0481 777.