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  • Expert help & FREE advice
  • Stop creditor action
  • One affordable monthly payment
  • Reduce or freeze interest charges
  • Reduce your debt by up to 70% without IVA
Get a comparison between normal Debt Management Plan and our Debt Management Plus Plan

Debt Management Plan's

Debt management is often the best solution to debt difficulties, a debt management plan will be created by a debt advisor who will review your entire financial situation in detail. The advisor will calculate the most effective and quickest way to pay off your debts.

Debt Management Plan Pros

  • The key advantage is having one affordable monthly repayment to make which we then distribute to your creditors on your behalf.
  • We will handle any communication between your creditors and yourselves. Taking away that stress for you, as it can be a struggle in negotiating lower payments.
  • Once your priority living expenses have been calculated in to your plan, you only pay what you can afford. This way, you can still pay those important bills like council tax, Gas & Electric, Water, etc..
  • We can help reduce or freeze any interest charges as well as avoid any penalty fees that you may have otherwise been charged.

Debt Management Plan Cons

  • If you do decide to enter a debt management program your credit rating could be affected, as you are changing the terms of your orginal contract with your creditors. If you are already struggling with your repayments then your credit rating is likely to be poor. It's not uncommon for creditors to give you a default notice.
  • The time taken to repay your debt will increase as you are going to be paying less off your debt each month.

Debt Management Plus Plan

Debt Management Plus Plan is a new concept in the UK for paying off personal debts. The new Plan is a method in which we are able to assist the UK population in clearing their debts, in a way no other organisation in the UK is doing. The debt can be written off or dramatically reduced without needing any further borrowing, or the use of an IVA.

The plan has all the same benefits as a normal Debt Management Plan but with the added benefits of reducing your debt by up to 70%. Our Debt Management Plus Plan also comes with a free anti-harassment service where creditor phone calls are diverted to National Debt Control.

IVA's

An Individual Voluntary Arrangement - IVA is a formal agreement between you and your creditors where you will come to an arrangement, to make reduced payments towards the total amount of your debt in order to pay off a percentage of what you owe. Generally after 5 years your debt is classed as settled. Due to its legal standing, an Individual Voluntary Arrangement - IVA has to be set up by a licensed professional called an Insolvency Practioner (IP).

Entering into and maintaining payments to the IVA will demonstrate to your creditors your commitment to repay a proportion of your debts by way of a formal legally binding arrangement.

(ALERT - Many companies are pushing clients on to IVA's when its not always the best option, we only advise your best option and not ours.)

By comparing the IVA pros and cons it will help you understand the IVA process better.

IVA Pros

  • An IVA is private so your friends and family will not find out about it. This differs from bankruptcy where it is a legal requirement for it to be published in the newspaper.
  • An IVA acts as a safeguard to losing your home.
  • A person subject to an IVA can continue to have a current account. Please note the person will not be allowed an overdraft facility though.
  • An IVA will have a person debt free in up to 5 years.
  • Up to 75% of your debt can be written off in an IVA
  • With an IVA you only pay back what you can afford.
  • With an IVA your creditors can not contact you.
  • An IVA provides protection from court action.

IVA cons

  • The IVA period is longer than bankruptcy. An IVA can last up to 5 years, whereas bankruptcy is just 1 year.
  • An IVA is recorded on the Individual Insolvency Register, which is searchable by the public if they wish to look at it.
  • With an IVA you cannot leave out some creditors. I you do then the creditors can still pursue the creditors.
  • The IP will monitor wage slips, salary updates regularly. If you earn more then you pay more in to the IVA.
  • With an IVA the insolvency practitioner may request some of the equity in your property is released as part of the IVA deal with creditors.
  • The cons of an IVA is that you must have at least £15000 of debt, to at least 3 creditors.
  • To do an IVA you must be able to afford to pay at least £200 per month.
  • People in an IVA cannot get further unsecured borrowing.
  • An IVA will show up on the credit report for up to 6 years.
  • An IVA means the person will need to pay back substantially more than an IVA.
  • An IVA must have the agreement of at least 75% in value of the total debts, of those who decide to vote.
  • If an IVA fails then the person will be made bankrupt.
  • An IVA can not guarantee the protection if the home because the creditors may insist that the assets are still attackable.
  • An IVA is set up and run by an insolvency practitioner (IP). Some IPs are costly.
  • An IVA is legally binding.
  • If you lie on an IVA application it is a criminal offence.