Advantages of a Debt Management Plan
You only pay what you can afford based on the common financial statement (CFS).
You will no longer need to deal with your creditors alone as we will be acting on your behalf in most dealings.
We will ask your creditors to freeze interest and charges, this stops the debt increasing.
You will only pay one monthly payment to Debt Free Me who will pay your creditors on a pro-rata basis.
You will receive a statement showing the payments sent.
You will remain in control of assets, i.e. property.
You pay back the debt at a level you can afford at present rather than your current contractual agreement.
Disadvantages of a Debt Management Plan
Debt managment plans are not legally binding so creditors do not have to agree to the repayment schedule.
The creditor can ask for a review of your situation which could cause your payment to increase.
They are not oblige to freeze interest and charges.
It is possible that the total debt will increase.
It is possible that you will be required to pay your creditors in full over a number of years.
It is possible that you will continue to pay them for some considerable time after which an IVA would have been completed.
You will have no protection from the courts, and the creditors can issue a judgement, bankruptcy petition or legal action in respect of their debt at any time.
