Debt Management

This solution is ideal for those who do not have large enough debts to consider an IVA or a PTD. There are many commercial providers of debt management plans as well as voluntary organizations who can help you manage debt and agree a repayment plan which fits within your budget.

For example, if you have several credit cards, store cards and personal loans a debt management plan could replace the numerous payments you make each month with a lower single monthly payment.

It is run along the same principles as an IVA or a PTD but is an informal agreement between your creditors and you. There is no fixed time limit to a Debt Management Plan as the creditors do not have to agree to stop interest and charges which may increase your total debt initially. A decent debt management administrator will often already have agreements in place with major creditors or will be able to get agreements in place once a level of regular payments and commitment have been established. If an agreement is reached early enough with your creditors regarding additional interest and charges you may well be able to pay off your debt in a similar timeframe than you would have done with the higher payments.

Debt management has many advantages but also a number of disadvantages compared to an IVA or PTD but for many people it is the only alternative if they do not fit the criteria of the other solutions.