Debt Management Plan Pros & Cons
A Debt Management Plan is a great way for you to regain control of your finances, as you are making one single lower payment to all your creditors. For free advice and information please contact our team on 0808 131 9103.
Debt Management Pros
- One payment which covers all your creditors.
- Flexible agreement that can change to suit your finances.
- Informal agreement meaning you avoid lengthy insolvency procedures.
- Some creditors will freeze interest and charges on your debt.
- We will deal with your creditor phone calls or letters.
Debt Management Cons
- Creditors are not legally obliged to accept your offer.
- It will take you longer to repay your debts.
- Your credit rating will be damaged.
Entering into an IVA may adversely affect your
credit rating for up to six years from the date of approval.
Your property will be protected within an
IVA but you may be required to release all or part of any equity during the
period of the arrangement.
Failure to complete the term of an IVA can
result in bankruptcy.
(In Scotland, a PTD is the equivalent to an IVA.)