You don’t have to necessarily choose a Debt Management Plan. If you’re in difficulty with your finances you can opt for a different type of plan.
An IVA is an agreement between you and your creditor by which you are obliged to repay him or her your unpaid debt on a specific timeline. This timeline is usually of 60 days but it may vary depending on the loan size. What makes an IVA special is the fact that charges and interest is frozen, leaving you with only your debt per se to repay.
Sometimes bankruptcy can be used as a final solution if you are in difficulty with your finances, but it will show signs on your credit rating and it will put your home and personal belongings to risk. In this case it would be better for you to take a look at an IVA or a debt management plan.
Debt Consolidation Loans
These will gather all your debts in one monthly payment of low value. To be able to attain this you will need to have a good credit history and no missed payments. A tainted credit will not allow you to get an unsecured consolidation loan and in this case an IVA or a Debt Management Plan would be the way to go.
PTD is an acronym for “Protected Trust Deeds”. These are similar to IVAs but dedicated to people from Scotland. There are a few minor differences between a PTD and an IVA. Just like an IVA, a PTD is an arrangement between your creditor and you, arrangement that stipulates you have to pay the creditor back over a certain period of time. This period of time is in most cases of 36 months.