Benefits and Disadvantages of a debt management plan

It is important that you have all the facts before entering any debt solution.

Here are some of the key aspects to bear in mind when looking at a Debt Management Plan.


  • One payment to cover all of your debts
  • Professional representation from your own personal account manager
  • Reduced repayments so your debts are repaid at an affordable rate
  • Relieves the pressure of dealing with multiple creditors and payment dates
  • In most cases interest and charges can be frozen
  • You can make your payments weekly, two weekly, 4 weekly or monthly.
  • Dramatically reduces creditor pressure and contact
  • You do not have to be in full time employment to be eligible
  • Negotiate reduced payment arrangements even if your accounts have defaulted or if you have a County Court Judgement (CCJ).
  • Complete any necessary court paper work.


  • Your credit rating will be affected
  • Your accounts may default
  • It will take you longer to pay off your debts
  • Your creditors do not have to accept reduced payment arrangements
  • Your creditors will still have to issue some letters under the Consumer Credit Act
  • Secured debts cannot be dealt with under a Debt Management Plan

We cannot guarantee resolution in respect of County Court Judgement and Bailiff’s, although we do have a wealth of experience in this area.

If you require any additional information, simply contact one of our dedicated customer services team on 0800 072 6623 or by email.