In a debt management plan, you make monthly payments until your debt has been repaid in full.  There is not usually a minimum debt amount but it is not recommended if your debts are over £15,000 as an IVA could be a better solution.

The debt management company cannot guarantee that interest will be frozen on your debts and they cannot force creditors to accept your proposal.

A plan is not binding on creditors who do not agree to taking part in it.  However, they cannot refuse to accept any payments made to them.

Creditors can also take enforcement action even if you are keeping up your payments under the plan.

These are some of the benefits of a debt management plan:

• You will only be making one monthly payment
• The payment is affordable to you
• The company who deals with your debt management plan will contact your creditors
• It should hopefully reduce the level of calls and letters you are receiving