There are a variety of ways to manage your debt. A debt management plan is one of those methods, and could provide you with the ideal way to repay your outstanding debt.
Essentially, a debt management plan is an arrangement with your creditors to pay the money you owe in regular instalments. This arrangement is brokered by a Debt Management Company (DMC), so you will not have to deal with your creditors directly.
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How can a debt management plan help me repay my debts?
There are a variety of advantages to using debt management plans to manage your debt. These include:
- Avoiding direct contact with your creditors
- Payments are made direct to the DMC, who will divide it fairly between your creditors
However, it is important to bear in mind that a debt management plan might not be the best option for you. For instance:
- With some DMCs you can incur high administration costs, leaving you with less money to pay off your debts
- DMCs generally only handle non-priority debts, so you will still have to pay off priority debts yourself
Getting more information on debt management plans
At Legal Advice Helpline, we can offer you access to further information on debt management plans or put you in touch with a debt management professional advisor.
Call us today on on 0800 612 3042 to make a debt enquiry or ask us to call you back.