Debt Management Plan Criteria

The best way to see if you fit the Debt Management Criteria is to speak to one of our Debt Free advisors, they will take details of your finances and help to find a Debt Solution that is right for you. Call free today on 0808 131 0039.

Below offers you some of the basic criteria that we will take into account when helping you decide if a Debt Management Plan is right for you. 

Criteria for a Debt Management Plan
 

1: Level of Unsecured Debt.

Debt Free would recommend that you have unsecured debt levels of over £5,000. If you are not sure of the exact figure that you owe (and you would be surprised by how many people don't), then the best thing to do is to get a up to date balance from all your unsecured lenders.

Examples of unsecured debt includes credit cards, store cards, unsecured loans and overdrafts. 

2: Stable income. 

It is important that you have a stable income, as a Debt Management Plan will require you to make regular payments to your creditors. Although a debt management plan is flexible which means you can alter your monthly payments should your circumstances change.

3: You are insolvent. 

This means that you are no longer able to meet your current credit repayment obligations. As soon as you find yourself heading towards this situation you need to seek expert advice as soon as possible.

If you are struggling to meet your creditor repayments as they fall due then a Debt Management Plan is a great way to help you regain control of your finances. Please remember that secured loans, mortgages and priority debts cannot be included in your plan.



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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.)
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