Is a Debt Management Plan right for me?

If the answer is "yes" to any of the following questions, a Debt management Plan can help:

  • Are you struggling to pay your debts?
  • Have you been refused help, for example by your bank?
  • Are your creditors pestering you
  • Are your creditors threatening legal action?

A Debt Management Plan is suitable for most people burdened with debt. It is possible that an alternative solution may be required depending on your personal circumstances. Your Debt Advisor will discuss these with you.

There are however, certain criteria that must be met for a Debt Management Plan to be suitable for you.

  • You must be unable to meet your current monthly debt repayments.
  • Your situation must not be so serious as to merit bankruptcy.
  • Every month, you must be able to afford to pay at least £100 towards your unsecured debt repayments.
  • Your unsecured debts must be at least £8,000
  • And you owe money to at least three different unsecured creditors.

If you meet these five criteria then a Debt Management Plan may be suitable for you. Even if your situation is different to those above, do send us your contact details and a Debt Advisor can discuss the best options with you.

Please be aware that "unsecured debt" means money that you owed which is not secured on your home or some other asset that belongs to you. For example, credit cards, store cards, unsecured loans, utility bills etc. Only unsecured debt can be included in a Debt Management Plan.

The other types of debt which will be taken into account when calculating what you can afford to pay, but which cannot be included directly into your Debt Management Plan are:

  • Mortgages and other secured loans
  • Rent
  • Leases (property)
  • Hire Purchase
  • Car loans (if secured against the car)
  • CSA / Maintenance arrears
  • Council Tax arrears
  • Student Loan repayments.

Remember, just because a Debt Management Plan may not be suitable for you, it doesn't mean nothing can be done. A Debt Advisor can usually help no matter what your debt problems are.

 

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