Debt Management Cons

A Debt Management Plan is a long term financial commitment helping you to control your cash flow with one easy payment, but there are some implications which are worth considering. For more information take the Debt Free Test or call our Debt Free advisors on 0808 131 0039.

Debt Free: Debt Management Implications

• Creditors do not have to accept your offer and can, in principle, change their mind at any time.
• It will take you longer to clear your debt.
• Your credit rating may be affected. 

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)