Debt management plan

A Debt Management Plan for Personal Debt can be very useful short term to give you some breathing space when you believe that your current financial situation will soon change.

If you take on the help of a Debt Advice management company you will generally have to pay a monthly charge although there are a few debt management companies which will help without a fee.

If you choose to use a debt management company they will require a detailed list of your income and expenditure. Once you have provided this information they evaluate how much disposable income you have free each month to offer to your creditors.

Once a figure is agreed your debt management company will contact your creditors directly with an offer which is affordable to you and request that all charges or interest be suspended.

Debt Management plans are an informal arrangement though so creditors don’t have to agree any suspension of interest and charges unlike formal arrangements such as IVA’s.

Just as with any repayment plan your credit rating could be affected