Knowing if debt management is the right debt solution for you can be tricky. The right debt solution for you can be dependant on a number of different factors, such as your income, outgoings and level of unsecured debt. If you are looking to reduce your monthly outgoings and simplify your finances, a debt management plan could be the debt solution to help you do just that.
A debt management plan allows you to consolidate multiple unsecured debts into justa single monthly payment. This can make managing your debts much easier as you no longer have to worry about making several payments to different creditors throughout the month.
With a debt management plan you will benefit from reducing the amount of debt that you need to repay on a monthly basis. However, you will have to repay these debts over a longer period of time and some creditors will not freeze additional interest and charges on your debt.
Your level of debts is not the important factor when deciding if debt management is the right solution for your debts, it is more about your ability to repay your outstanding debts at a level that is affordable to you. Typically if your debts are over £12,000 you may find that your circumstances make you more suitable for an IVA. Like debts management, an IVA allows you to make one affordable monthly payment but offers you the additional advantage of having an element of debt write-off and becoming debt free in a typical period of 60 months.