Debt Management FAQ

Find answers to frequently asked questions about debt management

With debt management you could:

  • Afford your monthly payments
  • Stop or reduce interest and charges
  • Let experts deal with your lenders

Have any questions?

Call us on 0800 970 7673 or fill in our simple form to recieve a no obligation call back from on of our friendly, experienced advisers.

Fees & Key information

Find out more about the fees involved with each debt solution.

Find out if you qualify for Debt Management

Tell us about your situation

Tell us about you

Useful free guides

Download the Insolvency Service guide to dealing with lenders.

Download the information package from Scotland’s Insolvency Service.

Debt Management: how it could help

Here is an example of how a Debt Management Plan could make your debts more manageable.

Credit card £7,000
Personal loan £6,000
Store card A £3,000
Store card B £2,000
Total owed £18,000
Current monthly repayment £700
With a Debt Management plan:
New repayments £250

Repayments are based on affordability and vary from case to case.

Need debt advice?

Call 0800 970 7673or fill in our simple form to receive a free no obligation call back from a friendly, experienced adviser.

What exactly is a debt management plan?

It's an informal repayment plan for people who can no longer afford all their debt repayments. It works by reducing your unsecured debt repayments to a manageable level, leaving you with enough money to cover all your secured debts (e.g. your mortgage) and other essential costs like bills.

How long does it last?

However long it needs to. Normally, it'll keep going until you can afford to make full repayments again, or until you've fully repaid the debts covered by your plan - whichever comes first.

But keep in mind that your lenders will only accept a debt management plan if you can still afford to repay your unsecured debts in full within a reasonable period of time.

How do I know if I'm eligible?

Debt management plans are only available to people who need them. To qualify, you must:

  • Be unable to afford your unsecured debt repayments
  • Have more than one unsecured debt
  • Be able to make reasonable contributions towards your unsecured debts each month, once you've covered your other costs

A debt management plan is an informal arrangement, and your lenders don't have to accept it under any circumstances - but they're much more likely to if you meet the above criteria.

How do I arrange a debt management plan?

It is possible to do it on your own - by contacting your lenders directly and negotiating for lower monthly payments. However, many people feel uncomfortable doing this on their own, and it will take time.

On the other hand, if you arrange your debt management plan with one of our partners, you can let experts take care of all the negotiations and admin work on your behalf. All you'll need to do is tell them how much you can afford each month, and they'll work out your new repayment plan. As long as your lenders accept this, it shouldn't take long to get your debt management plan up and running.

Can I enter a debt management plan if I'm unemployed?

It depends. Your lenders will require regular monthly payments on a debt management plan, which means you're more likely to qualify if you're in regular employment.

However, if you're unemployed and unable to meet your debt repayments, we could offer practical advice for managing your debts until you find work again. If you're still struggling after that, get back in touch and we'll talk you through your options.

How much would I pay each month?

It depends on what you can afford. Your new monthly payment on a debt management plan is based on how much money you have left after you've covered your other essential living costs, such as bills, food and travel.

Please note that fees are payable: our partners will discuss this with you before you agree to enter a debt management plan.

Will a debt management plan help with secured debts like my mortgage?

Yes. Although it won't actually reduce the amount you pay towards secured debts, it will reduce your unsecured debt repayments to fit around your mortgage and any other secured debts.

Are there any downsides?

All debt solutions have their downsides, and you should consider these before you decide whether a debt management plan is right for you. Because you'll be missing the repayments you originally agreed, your credit rating will be affected, and unless your lenders agree to freeze interest and charges you could pay more in the long run.

However, if you're really struggling, the consequences of not getting the help you need could be even more severe.