What is a debt management plan?

Debt Management Plans are provided by debt management companies who negotiate with your creditors to change your debt repayment terms. Debt Management Plans (DMPs) can be a good debt solution, especially if your problems are likely to be short term. Increasingly, especially if you don't owe very much in total, creditors may ask you to try debt management before being considered for an IVA. Debt management firms will usually ask you to pay them as much as you can afford. They may negotiate with your creditors to accept lower repayments and/or obtain interest freezes. Commercial Debt Management companies are often able to do this - it isn't only the debt management charities that succeed here. They pass the money to your creditors less their initial and, then, monthly fee. This is usually around 15%-18%.

Taking the two-minute ClearDebt Analyser test now will give you a personalised initial assessment of whether a debt management plan could be right for you!