Am I Suitable for Debt Management?

 

To find out if a Debt Management Plan is the best way to help with your financial situation, you will need to speak to an expert who will conduct a detailed financial Factfind. Call us free on 0808 131 9110.

Your eligibility for Debt Management cannot just be determined by a few brief questions, but below are some basic criteria that can be used.

1. You have over £5,000 of unsecured debt.

Unsecured debts can include credit and store cards, personal loans and overdrafts.

It is important that you obtain up-to-date outstanding balance on your debt. As even though you might not think you have £5k worth of debt, if you have not been keeping up on your monthly repayments then interest and charges will have been added.

2. You are insolvent.

Insolvency is not the same as bankruptcy, It simply means that you cannot afford to repay your debts each month.

You need to be careful that you do not fall into the trap of repaying only the minimum payments and thinking you can afford your debts, because with the interest and charges applied you could be paying off your debts over a very long period.

3. You have a stable income.

As a Debt Management Plan is a repayment scheme then it is important that you have some form of income, so you can commit to paying a fixed but affordable sum each month to your creditors. 

 

 

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.)