Debt Management Plans are a debt solution which is designed to help you regain control of your personal finances, by reducing your monthly outgoings to your unsecured debt, and repaying this debt at a level you can afford.

A Debt Management Plan is an informal agreement between you and your creditors. It allows you to repay your debt at a realistic level and shows your creditors that you are committed to repaying all of your debt, even though it may take you a little longer to do so. This type of plan can also allow you to avoid lengthy insolvency procedures too, such as an IVA or Bankruptcy.

If we help you decide that your circumstances are suitable for a debt management plan, we can calculate how much you can afford to repay towards your debt based on your income and expenditure. Debt Management Plans are often an ideal debt solution for those who feel as though they cannot afford their debts as they are tailored to what you can afford. During out initial phone call we will make sure that we account for all essential expenses, such as mortgage/rent payment, food shopping, utility bills, etc.

From here we will negotiate with your unsecured creditors and ask hem to accept reduced payments based on what we have agreed is affordable to you. Many creditors also agree to freeze or reduce additional interest and charges on your debt, although this cannot be guaranteed.

There are a number of benefits to a debt management plan too. If you go through a debt management company, such as DebtsManagement.co.uk, we will handle the negotiations with your unsecured creditors. You also don’t need to worry about phone calls and letters from your creditors as we can handle this as part of our debt management service.

Please be aware that this form of debts management is not suitable for everyone, and it is essential that you get professional debt management advice so that you are aware of all the possible debt solutions.