A debt management plan could help bring your finances back under control
Call us on 0800 970 7673 or fill in our simple form to recieve a no obligation call back from on of our friendly, experienced advisers.
Find out more about the fees involved with each debt solution.
Download the Insolvency Service guide to dealing with creditors.
Here is an example of how a Debt Management Plan could make your debts more manageable.
| Credit card | £7,000 |
| Personal loan | £6,000 |
| Store card A | £3,000 |
| Store card B | £2,000 |
| Total owed | £18,000 |
| Current monthly repayment | £700 |
| With a Debt Management plan: | |
|---|---|
| New repayments | £250 |
Repayments are based on affordability and vary from case to case.
Call us on 0800 970 7673or fill in our simple form to receive a free no obligation call back from one of our friendly, experienced advisers.
It's an informal repayment plan for people who can no longer afford all their debt repayments. It works by reducing your unsecured debt repayments to a manageable level, leaving you with enough money to cover all your secured debts (e.g. your mortgage) and other essential costs like bills.
However long it needs to. Normally, it'll keep going until you can afford to make full repayments again, or until you've fully repaid the debts covered by your plan - whichever comes first.
But keep in mind that your lenders will only accept a debt management plan if you can still afford to repay your unsecured debts in full within a reasonable period of time.
Debt management plans are only available to people who need them. To qualify, you must:
A debt management plan is an informal arrangement, and your lenders don't have to accept it under any circumstances - but they're much more likely to if you meet the above criteria.
It is possible to do it on your own - by contacting your lenders directly and negotiating for lower monthly payments. However, many people feel uncomfortable doing this on their own, and it will take time.
On the other hand, if you arrange your debt management plan through us, we can take care of all the negotiations and admin work on your behalf. All you'll need to do is tell us how much you can afford each month, and we'll work out your new repayment plan. As long as your lenders accept this, it shouldn't take long to get your debt management plan up and running.
It depends. Your lenders will require regular monthly payments on a debt management plan, which means you're more likely to qualify if you're in regular employment.
However, if you're unemployed and unable to meet your debt repayments, we could offer practical advice for managing your debts until you find work again. If you're still struggling after that, get back in touch and we'll talk you through your options.
It depends on what you can afford. Your new monthly payment on a debt management plan is based on how much money you have left after you've covered your other essential living costs, such as bills, food and travel.
Yes. Although it won't actually reduce the amount you pay towards secured debts, it will reduce your unsecured debt repayments to fit around your mortgage and any other secured debts.
All debt solutions have their downsides, and you should consider these before you decide whether a debt management plan is right for you. Because you'll be missing the repayments you originally agreed, your credit rating will be affected, and unless your lenders agree to freeze interest and charges you could pay more in the long run.
However, if you're really struggling, the consequences of not getting the help you need could be even more severe.