A debt management plan is an informal agreement between you and your creditors. In it you agree to repay your debt by using smaller payment packages and do this while keeping a standard of living that is acceptable to you. You can also make the payments over a longer period of time.
What is covered in a Debt Management plan?
A debt management plan will not cover mortgages or secured loans but it will cover non-priority debts like credit cards, bill arrears and unsecured loans. With secured debts, you assets – most commonly your house or car – can be repossessed and sold to cover the debt in case you won’t be able to pay it anymore.
You can contact us and we will explain all this to you in greater detail.