Liquid Your Company

Debt Management

If youre finding it difficult to pay off your debts and you dont qualify for an IVA, a Debt Management Plan may be just the thing for you.

So what is involved in a Debt Management plan?

• By taking out a Debt Management Plan you pay back the debts you owe to your creditors in affordable, regular instalments;

• you make only one payment directly to a Debt Management Company which will then divide the payment fairly between all your creditors.

• An additional advantage of this method is that you dont have to speak to your creditors yourself to arrange the plan; the Debt Management Company does it for you.

• The main Advantage to a Debt Management plan is that it is not a legally binding agreement meaning that you can cancel the plan at any time.

• But the main Disadvantage to a Debt Management plan is that it is not a legally binding agreement meaning that your creditors can cancel the plan at any time

The other major disadvantage of a Debt management plan when compared to an IVA is that the plan will continue until your debts are cleared or until you wish to end the arrangement (for example if your income improves and you can afford to revert to the original monthly payments).

Therefore with a Debt management plan you dont have the advantage of writing off up to 75% of your total debt as you do with an IVA, but you can enter into a plan if youre debts are less than 15,000 or if you have surplus assets that prohibit you from entering into an IVA.

If you feel that Debt Management is your best option, give me a call on 0800 533 5370 now to discuss it further.