With a Debt Management Plan you will pay back the monies owed to your creditors in agreed, regular instalments. You make just one payment directly to a Debt Management Company who then divides the payment fairly amongst your creditors. Another benefit of taking out a Debt Management Plan is that the company you select as your Debt Managers will deal directly with your creditors for you, meaning won’t have to speak these companies should you choose not to.

How do I know if a Debt Management Plan is right for me?

A Debt Management Plan will be a suitable option for you if you can afford to make regular payments to your creditors and you would like to have an organised and simple way to repay monies owed by you. It could be the best available option if you:

1) Need a short term solution to your outstanding debts.

2) Have unsecured debts that you are finding difficulties in repaying.

3) Have equity in your property but would prefer not to remortgage or take out a secured loan.

4) Only owe money to one or two creditors.

5) Will not be eligible for an IVA (Individual Voluntary Arrangement).

6) Would prefer your partner not to find out about your debt.

7) Want the option of having a debt manager deal with your creditors.

8) Are able to repay your debts in full but don't want to have to make changes to your lifestyle.

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John

Wednesday, 21 October 2009 08:27:49 BST

The Citizens Advice Bureau are literally overwhelmed by the number of people asking for their help. There is a 2 month waiting list to see Debt Advisers in many CAB offices. You may not want to pay for a company to deal with creditors but outside of the CAB, you will only get what you pay for. So if someone offers to do the job for nothing - ask yourself - do they have the systems in place to deal with it?Probably not.

REPORT!

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