When you are considering whether to solve your debt problems by using a debt management plan, you should consider seeking professional debt advice before committing to something that may not be suitable for you.
Deciding whether you should use a debt management plan all depends on your own circumstances, the types of debt you have, and whether you will be able to repay your debt in a reasonable amount of time.
When you make an enquiry for a Debt Management Plan, any decent company will make sure it is the best way for you to solve your debts. It’s important to be sure a debt management plan is the right solution for you, because there are many other alternative solutions for your debts that might be a better way to deal with things.
It is certainly worth talking to a couple of different organisations about your debt and find out what they can do for you. That way you can work out which is the best way for you to start to solving your debt problems.
What is a Debt Management Plan anyway?
It is a plan to repay your debts at a reduced amount. You still have to pay all of your debt back but because your payment is reduced, it is more affordable. Instead of paying each of your creditors separately, you make one payment to your debt management company who then pay your creditors for you.
It is not a legally binding agreement and your creditors don’t have to accept your reduced payment offer. They can still take you to court if they wish although most creditors are typically accommodating, there are possibly still a few who are more difficult.
You can find out more information about debt management plans by visiting my what is a debt management plan guide.
Where can you get a debt management plan or find out more?
There are several places where you can get a debt management plan. For example StepChange Debt Charity or Payplan can provide you with a free debt management plan. This means you don’t pay any fees to them and all the money you pay goes towards your debts. You can find their details on the Debt Help page.
As mentioned above it is important to get the correct and proper advice you need before deciding on how to solve your debt problems. The free debt help organisations are a good place to start as they are impartial, and it could also be worth talking to a fee charging organisation, to get a feel for what is on offer.