What is a debt management plan?

A Debt Management Plan is an informal arrangement between you and the companies that you owe money.  A debt management plan enables you to pay back your debts to your creditors on a reduced amount, based on affordability over a mutually agreed period of time.

The interest on these debts may be frozen and all legal action and collection procedures stopped.  With a debt management plan, you only pay one affordable payment every month to a debt management company who in return makes a distribution to all your creditors.

What are the benefits of a debt management plan?

• It can be arranged very quickly

• You don’t have to pledge any of your assets

• You only make one affordable payment per month to cover all your creditors

• Typically the interest on your debts are frozen

• Avoid debt collector and creditor hassle

• You will still be able to afford your regular bills

• You repay your debts over an agreed period of time

• A debt management plan is flexible and can be adapted in the future

• You will not be tired into any debt management plan

What are the benefits of our debt management plan?

• You can start a full application today, no web tests, enquiry calls or referrals

• It only takes 15 minutes to complete online

• We can be in touch with your creditors in as little as three days.

• Your debt management plan is 100% online and gives you many flexible options

• Our debt plan fee structure is fixed and not based on the amount of your debt

• We are reputable, regulated and operate a Customer Charter

• Were always available, online or via our contact centre

• We have one of the lowest fee structure around
• Our team has over 20 years experience in debt management

How do you know if a debt management plan is right for you?

• You must have at more than one creditor you owe money to
• You must be receiving an income
• You are struggling to meet your monthly payments

Still unsure about going ahead with a debt management plan?  Give us a call, we can advise you of the best option for you- our advice is free!

Other debt options available:

Individual Voluntary Arrangements (IVA)

An IVA is an alternative to bankruptcy and was introduced in the insolvency Act 1986. It allows an individual who has debts to make a proposal to their unsecured creditors to reach a settlement. If the proposal by over 75% of the unsecured creditors who vote the IVA is legally binding on all the unsecured creditors, with a few exceptions, including those that did not vote and prevents any further action being taken.

Usually the costs of an IVA are less than bankruptcy and usually provide a better return to the unsecured creditors.

It is usual for the payment to unsecured creditors to be on deferred terms and for less than the full amount of the debt. Even though the debt may not be paid in full, once the IVA is complete the unsecured creditors who are included within the IVA can not chase for the remaining balance.

The majority of IVAs are based on 60 monthly contributions but can also include a lump sum for example from releasing the individual’s share in a property, life of endowment polices.

The monthly Payments made into the IVA will cover the fees for putting together the proposal and also supervising the IVA as well as making payments to the creditors.

During the period of the approved IVA the unsecured creditors are required to freeze all interest on the debts, they are prevented from pursuing the debts and also prevented from progressing legal action in relation to those debts except with the consent of the court.

Personal Bankruptcy

We only ever see bankruptcy and this as the very last option, contact us to discuss your situation.  Chances are we may be able to help or even just give you information about becoming bankrupt.  As with IVA's we don't offer a insolvency service.

Have a look at a typical debt management applicant and an example debt plan

Visit our Debt management example page >>

Have a look at our debt management frequently asked questions for more detail

Visit our Debt management FAQ's >>

Feel free to call us on               0191 4540226        for a confidential discussion or send us a quick email.