Debt Management Plans
A Debt Management Plan is an informal agreement with your creditors designed to allow a person who is struggling to meet their monthly debt repayments the opportunity to make a single more affordable monthly payment.
The most important part of the Debt Management Company’s duties should be to negotiate an interest and charges freeze on the outstanding accounts and then regularly ensure that creditors continue this freeze during the term of the Debt Management Plan.
IMPORTANT – This option should only be used if the total level of debt reduces with each payment and you should ensure that your payments are not swallowed up by interest and charges. There is little use in maintaining payments for a considerable number of years when the principal debts do not reduce. However this should always be the first choice solution if it is realistic.



