Knowing the answers will help you to have clear knowledge about your debt write off.
A Debt Management Plan is a strategic program that helps debtors reduce their burden of having unaffordable unsecured debts, and repay them to their creditors in a more affordable way. In the debt management programs, the IP’s sort your debt issues with your creditors to waive off most debts and reduce your monthly payments.
A successful debt settlement refers to a favorable debt management solution wherein the amount the debtor has to pay the creditor as repayment for the borrowed loan amount will be reduced directly. An IP on your behalf will negotiate with the creditors and will persuade them to decrease the debts that the debtor owes, and if the creditors agree, most debts will be written off, reducing the monthly payments.
The UK Government has put forward different debt management solutions to help debtors overcome their debts in a legal and manageable way. However, the debt solutions in Scotland are different from that of England, Wales, and Northern Ireland. Also, the debt reduction plans are legal programs that come with strict regulations, and so, it is essential for the debtors & the creditors to follow the orders according to the finalized debt solution.
The Debt Management Solutions in England, Wales, and Northern Ireland include –
Debt Management Plan (DMP)
Individual Voluntary Arrangement
Debt Relief Order (DRO)
For more help and advice, visit the Money Advice Service, an independent service set up to help people manage their money. Or find out more about the different options for paying off your debt here. IVAs are not available in Scotland. Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk