A Debt Management Plan can help you regain control of your debts, and whilst a Debt Management Plan is the right choice for a number of debtors, for some other solutions may be better suited to their circumstances.
A Debt Management Plan allows you to make more affordable payments towards your debts, and also a single payment instead of paying all the people you owe money to separately. This makes it easier for you to manage your debt, and your creditors get paid.
When you are taking the first steps to setting up a Debt Management Plan, the following will happen: –
- You will need to gather a list of all of your Debts.
- You will work out your Monthly Budget. So for example you will make a list of all of your expenses and income.
- With the budget complete, if you have any money left, you will know how much you have available to pay your creditors.
- A plan will be made to get back on top of your priority debts, if you have any that is.
The above will be carried out in conjunction with your chosen Debt Management Company. So for example, if you was to contact a Debt Management Company, they would go through all of this with you. Should a Debt Management Plan be unsuitable for you, they would normally recommend alternative solutions for your debt problems.
Would a Debt Management Plan be right for you?
A Debt Management Plan is one of a number of solutions to help people in debt. There are several things to keep in mind when you are considering a Debt Management Plan: –
- The types of Debts you have. Mortgage Debt for example, cannot be included in a Debt Management Plan. A Debt Management Plan is suitable for unsecured debts, such as credit cards and unsecured personal loans.
- If you are left with no available money after paying all of your other expenses, then a Debt Management Plan would not be suitable for you. There are other solutions though so please don’t worry. Visit the Get Help Now page to find out more.
- The length of time it will take you to pay back your debt. The last thing you would want is to be in debt for a long time.
Get a Debt Management Plan
With the above in mind, the best way to find out if a Debt Management Plan is right for you is to get Debt Advice from a professional organisation, such as the ones listed on our Get Help Now page. You can also continue browsing this site to find out more too, but definitely get advice afterwards.
Remember that if a Debt Management Plan isn’t suitable for you, most organisations can also help with other solutions. At least by making an enquiry, you will know the way forward for you and your debts.
Find out more about Debt Management Plans
If you would like to find out more about Debt Management Plans, then please see this guide looking at the Pros and Cons of a Debt Management Plan.