Who is a debt management plan suitable for?

A debt management plan is, in short, an agreement between you and your creditors as to how you will repay outstanding unsecured debts. This will usually involve your creditors accepting lower monthly payments and/or freezing interest and charges, in order to give you a chance to repay your debts at a more manageable pace.

However, as with any debt solution, you should consider your circumstances before entering a debt management plan. In some cases, another debt solution (e.g. a debt consolidation loan or an IVA (Individual Voluntary Arrangement)) might be more suitable. If you are unsure, always speak to a professional debt adviser.

Debt management might be suitable if...

• You can afford to repay your debts more quickly than the typical five-year period associated with IVAs
• Your debt does not meet the minimum amount needed to qualify for an IVA (normally around £15,000)
• Your disposable income is not high enough for typical monthly payments on an IVA (normally around £200)
• You have been unable to obtain a debt consolidation loan or remortgage due to the current financial climate

Debt management might not be suitable if...

• You have an inconsistent income – e.g. you are self-employed, or earn commission-based pay
• You do not think you will be able to repay your total debts in a realistic time period

How do I enter a debt management plan?

It is possible to arrange a debt management plan on your own. However, you will need to be prepared to invest the time and effort involved in doing so.

By arranging a debt management plan through Gregory Pennington, you will benefit from the knowledge and expertise of a company with 15 years experience in the industry and who has dealt with many similar cases, as well as a vast range of creditors.

For more information on our debt management plans, click here.