Reducing your monthly payments with Debt Management Plans

These are informal agreements between and your unsecured creditors and can be ideal in situations where people are experiencing severe but temporary hardship, for example through redundancy or a period of sickness, where they expect to be able to get their payments on track within a period of a year or so. 

Many Debt Management Plans run for much longer than this but are not recommended long term as in many cases you will continue accrue interest.

They do have a use though, especially if you need to buy time to consider your options and most providers will give you time to pay especially if you are demonstrating your willingness to pay something.

Debt Management Plans can also be very useful to setup if you are having difficulty in paying your monthly instalments and are planning to challenge the validity of credit card or loan agreements.

They can also be used as a precursor to setting up an Individual Voluntary Arrangement (IVA) or to give you time to get your affairs in order if you are having to consider Bankruptcy.

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