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Debt Management Pros & Cons

See the main benefits of debt management plans at a glance below;

Debt Management Plan Advantages

  • Charges and interest on your borrowing may be frozen
  • You don't have to speak to your creditors - we do it for you
  • You can ease the pressure and worry of unmanageable monthly payments
  • Your creditors will see your willingness to face up to your debts

Debt Management Plan disadvantages

  • A debt management plan is an informal agreement so you or your creditors are not legally bound by it
  • It will take you much longer to pay off your debts
  • Your credit rating may suffer as you aren't repaying the full amount you should every month
  • A debt management plan is only suitable for lower levels of debt. If you owe more than £15,000 it may not be the best solution for you

There are other pros and cons of debt management plans that you'll need to consider so contact us now to find out more.

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