Debt management solutions
Can I include all my debts in a Debt Management Plan?
A debt management plan will only help you with unsecured debts.
Examples of unsecured borrowing:
- Personal loans
- Overdrafts
- Credit cards
- Student loans
- Store cards
Secured borrowing
Secured Borrowing is when the lender has a legal charge over some property of yours, so that if you default on repayments, they can possess that property and sell it to get their money back.
Consolidated Loans
A consolidation loan is a type of secured loan. It allows you to convert one or a number of unsecured loans – e.g. credit card debts, overdrafts or bank loans - into one loan secured against your property. You should think carefully before taking out a consolidated loan.
Consolidated loans can be helpful for some people because it may allow them to make a lower repayment every month than they had done previously on their unsecured debts.
It is also less confusing to manage one repayment per month rather multiple repayments made on unsecured debts.
owever, although the repayments may be lower per month, repayments will probably have to be made over a longer period of time. This means that you will almost certainly end up paying more on your consolidated loan than on your unsecured debts. Because a consolidated loan is usually secured against your property you risk losing your home if you do not keep up with your repayments. In contrast, if you do not keep up repayments on unsecured debts the penalties are potentially less severe.
Before taking out a consolidated loan:
- Think about why you got into debt in the first place and try to change your habits so you won’t fall into the same trap in the future.
- Consider whether you want to take out more debt to repay existing debts.
- Write a budget to see if you will be able to afford repayments on a consolidated loan.
Be confident that you will be able to use credit wisely (if you choose to use it at all) whilst repaying your consolidated loan.
Listed below are some of the frequently asked questions on Debt Management Plans
- How do I know whether a Debt Management Plan is right for me?
- What are the advantages of a Debt Management Plan?
- What are the disadvantages of a Debt Management Plan?
- Is a Debt Management Plan a type of loan?
- How long will I have to pay a Debt Management Plan before I am debt free?
- How much does a Debt Management Plan cost?
- How much money will actually go to the companies I owe money to under a Debt Management Plan?
- How do I make the payments?
- If I have a change of circumstance can I stop the Debt Management Plan?
- Who tells the companies I owe money to that I am actually in a Debt Management Plan?
- Will the companies I owe money actually accept a a Debt Management Plan?
- How a will Debt Management Plan affect my credit status with Experian, Equifax and Callcredit, the three main credit reference agencies
- Will a Debt Management Plan stop all the companies that I owe money to constantly telephoning me and sending me letters?
- Will I receive a regular report to inform me that my debts are actually going down?
- After the Debt Management Plan is set will I receive be able to get any additional help and advice?
- After the Debt Management Plan is set up can I still use a credit card or apply for car finance if I budget for it?
- Once the Debt Management Plan has been set up does it mean that I will have to keep paying interest and bank charges?
- Can I include secured loans in a Debt Management Plan, such as car finance or mortgage?
- Can the companies that I owe money to threaten to take my house or flat once that I am in a Debt Management Plan?
- Can I include all my debts in a Debt Management Plan?
- Debt Management Programme
- DWP Debt Management
- Credit Card Debt Management
- Advanced Debt Management Plans
- About Card Debt Management
- Advanced Debt Management Solutions
- Association of Debt Management
- Best Debt Management
- Budget Right Debt Management
- Christian Debt Management
- Consumer Debt Management
- Debt Management can help you make a clear start with your debts
- Credit Card Management
- Debt Collection Agency Advice
- Debt on Credit Card
- Debt Management Advice
- Debt Management Agencies
- Debt Management Agency
- Debt Management Articles
- Debt Management Associates
- Debt Management Centre
- Debt Management Companies UK
- Debt Management Company
- Debt Management Consultants
- Debt Management Corp
- Debt Management Corporation
- Debt Management advice
- Debt Management Credit advice
- Debt Management Group
IVA's
The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.
In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]
What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
[more...]
DANGER
Due to the tremendous demand for debt consolidation services the United Kingdom is now overloaded with debt management companies that contain misleading information. [more...]