Debt Management

Debt management services act in a similar way to IVA's by coming to an agreement with your creditors and allowing you to make one single, affordable monthly payment. Debt management services are more often used in cases where you can repay your debt back in less than the 5 year period an IVA would offer, due to a smaller debt typically below £15,000 or due to having a high income meaning larger monthly payments can be achieved.

Debt managment plans are usually arranged by debt management companies who will negotiate with your creditors on your behalf in an attempt to reduce the debt amount, freeze any interest and charges, deal with all correspondance with your creditors, and arrange all payments to creditors through the one signle payment you would make to them each month.

The debt management company will calculate a monthly amount based on income, debt value and the cost of living. You will also need to factor in any fees that the debt management company will charge you for their services. It is worth getting prices from a number of different companies and choosing the one that suits you best.