Debt Management can be an excellent solution to your debts, but it will depend on your individual situation. For example, an IVA (Individual Voluntary Arrangement) or another debt solution may be of more help, so it's worth talking to us first.
When considering debt management, you should also be aware that unlike an IVA (Individual Voluntary Arrangement), it is not a legally binding agreement. There may be other debt solutions available that are more suitable for your debt, so call us first to find out.
Call us free on 0800 083 1433 to find out more.
If you are calling from a mobile just let us know and we will call you straight back.
What is a Debt Management Plan?
A Debt Management Plan or DMP is a solution used to reduce the monthly repayments on all of your unsecured debt.
Your creditors are asked to accept lower payments and to make other concessions too, such as freezing interest.
With debt management, you agree to pay a regular monthly amount to a debt management company.
This company will deal with your creditors on your behalf, negotiating new repayments, usually at a much lower amount but over a longer period.
If you have debts over £3,000 and can make a regular monthly payment, a Debt Management Plan provides a way to become debt free within a set period of time.
However, it is worth remembering that a Debt Management Plan is generally only considered a solution for people who find themselves in short-term financial difficulties, or have debts of less than £15,000.
For more information contact Debt Free Direct for free and impartial advice.
Debt Management Pros and Cons
| Debt Management Pros | Debt Management Cons |
| Monthly payments are affordable | Not legally binding |
| Interest is sometimes frozen | Creditor chasing can continue |
| We will deal with all of your creditors | The debt does not go away (it can get worse) |
| Your home will not be at risk if you keep up payments | A DMP can take a long time to complete |
| You have access to help if creditors contact you | Your credit rating is harmed, with many missed payments |
| Your friends and family don't have to know | Interest can sometimes continue to build up |
Best Advice Model
At Debt Free Direct, before we recommend any course of action, we will take a detailed look at your individual situation. We use our Best Advice Model to ensure we only give you one solution - the RIGHT solution. Whether this is an IVA, consolidation loan, management plan, remortgage or, as a last resort, bankruptcy, our advice will be based solely on your particular circumstances.
Please note that a Debt Management Plan may:
- Lead to an increase in the sum to be repaid
- Lengthen the repayment period
- Additional fees or interest may be charged by your creditors
- Credit rating may be effected if not already so
Call us free on 0800 083 1433. Our phone lines are open 8:00 am to 9:00 pm Monday to Friday, 9:00 am to 5:00 pm on Saturday and 10:00 am to 4:00 pm on Sunday. You can call free for an initial chat about your own financial situation.
If you are calling from a mobile just let us know and we will call you straight back.
