Debt Management In Government
Consumers struggling with financial difficulties regularly turn to debt solutions, such as a debt management plan or Debt Relief Order, to prevent creditor harassment. All personal debts must be unsecured. Examples of unsecured debts include: personal loans, bank overdrafts and credit card debt.
There are other debt solutions, such as personal bankruptcy and Individual Voluntary Arrangements , but these aren't suitable for modest personal debts. Individual Voluntary Arrangements are expensive because they need an Insolvency Practitioner. Personal bankruptcy has never been suitable for small personal debts, especially now Debt Relief Orders are available.
What is a Debt Management Plan?
A debt management plan is a completely voluntary agreement between a debtor and his creditors. It allows someone to put all personal debts under one roof. A single contribution is made to an intermediary who will send money to creditors on a pro rata basis. Many consumers enter debt management plans to prevent further creditor harassment.
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