Confused About Debt Management?
Debt Management Plans
A debt management plan is an informal arrangement between yourself and your creditors. Typically a debt management plan, or DMP as it is sometimes called, is managed by a debt management company. They will negotiate with your creditors and help you understand your finances, so that they can agree a payment plan to pay back your outstanding debts.
You can read more about debt management plans with our articles, including:
- Debt Management Plan - Do You Qualify?
- Debt Management Plans - Freezing Interest and Charges
- Debt Management Plans - Advantages and Disadvantages
IVA’s
An IVA, or Individual Voluntary Agreement, is a more formal arrangement between yourself and your creditors. An IVA is government legislation and, if agreed, is more binding than a debt management plan. An IVA only applies to England and Wales, Scotland has similar legislation called Trust Deeds.
We have more articles covering IVA’s, including:
Trust Deeds
Trust Deeds are a similar form of legislation as the English and Welsh IVA, but are only applicable in Scotland. Similar to IVA’s, only unsecured debts are covered by a trust deed. You can find out if a Trust Deed is right for you here.
Bankruptcy
While bankruptcy can sometimes have a negative stigma attached to it, it can be considered, particularly if you have a high level of total debt, or if your income has been affected greatly. However, we would always suggest that you talk to one of our debt companies before proceeding with any debt solution. You can find out if Bankruptcy is right for you here.
