If you fall into debt through unsecured debts such as personal loans, credit cards or home shopping catalogues then life can become a nightmare. You could suffer anxiety, depression and of course, you would have threats of a court appearance. If your debts have spiralled out of control you could look into debt management plans as a way of becoming debt free.

If you are considering entering a plan then you need to take debt advice. A debt management plan is a contract, which you would have to honour. You would agree to pay a fixed amount of money each month and this amount would be spread out between those you owe money to through your financial advisor. Usually you would have to be able to pay at least 100 each month and you do need to owe out over 5,000. You would also have to owe money to at least 3 different creditors to be able to take out a debt management plan.

If you owe more, an IVA solution could be more suitable and again you could get in touch with a debt management company who would provide you with advice and help. An IVA could be suitable if you owe at least 15,000 and could pay at least 200 each month.