Should you find that you have taken on more than you can manage when borrowing such as over spending on credit cards or taking out loans that you can no longer repay then you would have to find a way to break out of the debt spiral and get back on your feet? There are many options that you could consider if you have debts that have spiralled out of control and one of them is debt management plans

A debt management plan could be an alternative to taking out an IVA or a consolidation loan depending on the amount of money you owe and to how many creditors. If you have debts of under 12,000 but more than 5,000 and owe to 3 or more creditors and are paying more than 100 per month then a debt plan could be suitable for you as a way to write debt off within a fixed period of time.

The debt management company would do all the work on your behalf including contacting your creditors and arranging with them for you to pay a fixed amount. You would pay a lump sum to your debt management team who would then split this amount between your creditors and if you stick with your plan you would become debt free.