Ultimate Guide to Get Out of Debt

If you’re under pressure to meet regular debt repayments, a debt management plan can help make things easier. A debt management plan enables you to repay your debts based on what you can reasonably afford each month. The best debt management plans are managed by debt advice solution providers regulated by the Financial Conduct Authority (FCA). 

As someone who is over indebted, these may be some of the questions running through your mind: What is a debt management plan, and what are the debt management plan pros and cons? Where can I access a debt management calculator, and what should I do if I am in a debt management plan and need a loan? Can I access a debt management mortgage? What are some debt management plan examples, and how long does a debt management plan affect your credit rating? This guide will help you answer these questions and more, but first, let’s explore the top platforms that connect you to some of the best third-party debt management plan companies.  

Top Platforms to Connect with Debt Management Plan Providers in UK 2023

• Viva Debt Help: Overall Best Platform to Gather Obligation Debt Management Plan Advice and to Connect with Leading Third-Party Debt Solution Providers
• Help My Debts Pro: Best Place to Find a Debt Management Plan to Cover Debts from Credit Cards, Store Cards, Council Tax, and Personal Loans up to £30000+
• 123 Debt Fix: Best Platform to Take a Confidential Debt Assessment and Access a Debt Management Plan Calculator
• Debt Nurse: Best Place to Connect with Third-Party Debt Management Plan Mortgage Arrears Solution Providers

Top 5 UK Debt Management Plan (DMP) Options 2023: Maximise Your Debt Relief  

Viva Debt Help: Overall Best Platform to Gather Obligation Debt Management Plan Advice and to Connect with Leading Third-Party Debt Solution Providers

Viva Debt Help helps thousands of UK residents with debts totalling £5,000 or more get access to leading third-party solution providers. It boasts various features that make it the overall best platform for getting obligation-free debt management plan advice. Viva Debt Help doesn’t offer debt advice, but it connects you to a suitable debt advice solutions provider regulated by the FCA to provide debt counselling based on your details. 

Simply complete an online no-obligation form with information on your debts, and give Viva Debt Help consent to match you with a qualified FCA-approved debt advisor. The process is quick and hassle-free. The debt advisor will contact you to help find a suitable solution for reducing your debt based on your financial situation, income and monthly outgoings. 

Highlights of Debt Management Plan Pros and Cons Advice Via Viva Debt Help

• Only partners with FCA-approved debt advisors
• Encourages a professional code of practice
• Dependable and transparent
• Helps you understand your options
• High confidentiality

Pros of Debt Management Plan Advice

• Hassle-free online process
• Private and secure
• Quick turnaround

Cons of Debt Management Plan Advice via Viva Debt Help

• Only suitable for unsecured debts

Visit Official Website of Viva Debt Help >>

Help My Debts Pro: Best Place to Find a Debt Management Plan to Cover Debts from Credit Cards, Store Cards, Council Tax, and Personal Loans up to £30000+

If you have debts totalling £30000 or more breathing down your neck, Help My Debts Pro can help you find a debt management plan from accredited debt solutions providers. The platform doesn’t offer debt advice but provides a streamlined process for accessing providers regulated by the FCA to provide debt counselling. 

It welcomes borrowers with non-priority debts like credit cards, store cards, council tax, and personal loans. You only need to complete a no-obligation online form and consent for your details to be passed on to accredited third parties who can help. Your data and privacy remain secure, and you can rely on Help My Debts Pro to help you find a suitable match. 

Highlights of a Debt Management Plan

• Get help with high debt amounts
• Access accredited debt solutions providers
• Streamlined online process
• All non-priority debts allowed
• Reliable

Pros of a Debt Management Plan for Debts up to £30000+

• Apply with no obligation to proceed
• Data and privacy remain secure
• Friendly support

Cons of a Debt Management Plan for Debts up to £30000+

• Can’t include priority debts.

Visit Official Website of Help My Debts Pro >>

123 Debt Fix: Best Platform to Take a Confidential Debt Assessment and Access a Debt Management Plan Calculator

123 Debt Fix aims to modernise and simplify access to FCA-regulated debt solutions providers for people from all backgrounds. It’s one of the best platforms to get a confidential debt assessment and access to a debt management plan calculator. Although it doesn’t offer debt advice, it features helpful advisors and companies that can help you understand your situation and connects you with an authorised debt management plan provider. 

The process is smooth and user-friendly, and you’re under no obligation to use the services of the recommended provider. You only need a few minutes to capture your debts and details, and allow 123 Debt Fix to connect you to an authorised expert who can help you overcome your debt problems. 

Highlights of Using 123 Debt Fix as a Debt Management Plan Calculator

• Smooth process
• Get access to an expert in minutes
• Confidential debt assessment
• Helpful resources
• Only works with authorised debt solutions providers

Pros of Using a Debt Management Plan Calculator

• Zero obligation
• Helps you understand your situation
• User-friendly

Cons of a Debt Management Plan Calculator 

• Some debts cannot be included.

Visit Official Website of 123 Debt Fix >>

Debt Nurse: Best Place to Connect with Third-Party Debt Management Plan Mortgage Arrears Solution Providers

Debt Nurse makes connecting with third-party debt management plan mortgage arrears solution providers easier than ever through a few simple steps. You can apply from anywhere through a no-obligation online form which captures your debts and details and helps Debt Nurse understand your situation. With your permission, it forwards your details to a suitable solutions provider regulated by the FCA. 

Although Debt Nurse doesn’t offer debt advice, it puts you in the right direction to get help and relieve the stress and pressure caused by being in debt. You can apply anytime during working hours, and thanks to fast responses, you don’t have to worry about waiting around when you need a solution to reduce your debts.

Highlights of Debt Management Plan Mortgage Arrears Solutions

• Apply from anywhere
• Know your options
• Zero delays
• Available anytime
• Partners with FCA-regulated providers

Pros of Getting Debt Management Plan Mortgage Arrears Solutions

• Fast responses
• Easy application
• Get a debt solution online

Cons of Getting Debt Management Plan Mortgage Arrears Solutions

• Not suitable for all debts

Visit Official Website of Debt Nurse >>

What is a Debt Management Plan Provider? And How Did We Choose the Best Debt Management Plan Providers?

A debt management plan provider is a lead generation company that makes accessing FCA-approved debt solutions advisors easier and faster. We considered the following factors when choosing the best debt management plan providers:

• Quick online processes
• Confidential debt assessments
• Zero obligation inquiries
• Access to FCA-approved debt solution advisors

Debt Management Plan Examples: Types of Debt Management Plans

Debt management plan examples include the following types:

Debt Management Plan vs IVA

A debt management plan (DMP) is an informal agreement between you and your creditors or the people you owe money to when you can’t repay your debts on time. It allows you to make smaller repayments than originally agreed, easing the pressure of high monthly payments. 

Debt Relief Orders

A debt relief order (DRO) is a form of insolvency that can help you write off debts you cannot repay. It involves a legal process where your debt repayments and interest are frozen for 12 months. If your financial situation doesn’t change in this period, the debts included get written off. 

IVAs

Individual voluntary agreements (IVAs) involve a formal and legally binding agreement with your creditors to pay off your debts at an affordable rate. Any unsecured debt left at the end of the IVA is written off. 

How Does a Debt Management Plan Work And Can I Get a Loan While on a Debt Management Plan? 

A third-party debt solutions provider sets up the debt management plan after assessing your financial situation and budget and determining how much you can afford to pay towards your debts after covering your priority payments and living expenses. You’ll only make a monthly payment to cover the debts included in the plan, and the provider will divide the amount among your creditors. 

If you’re wondering how long does a debt management plan last? It can vary depending on your debt and how much you can afford to pay off each month. Most debt management plans last between five to 10 years.

If you’re wondering, can I get a loan while on a debt management plan? The answer is it will depend on the terms of your agreement. Most terms don’t allow you to borrow more money until you finish the plan, and if they do, you must ensure you can afford the repayments.

Features and Factors of a Debt Management Plan

You can expect the following features and factors from a debt management plan:

Mortgage with Debt Management Plan

You can still get a mortgage with a debt management plan, but it may be challenging since the DMP will lower your credit score. The lender may also charge a higher interest rate, making the mortgage more expensive. You must also consider how mortgage repayments will affect your DMP affordability. 

How Long Does a Debt Management Plan Last?

The duration of your debt management plan will depend on how much you owe and can afford to repay monthly. Most DMPs last from 5 to 10 years. 

Transparency and Reputation of Debt Management Plan Companies

The best debt management plan companies are transparent about their terms and services and have an excellent reputation. The FCA authorises them to provide debt counselling and solutions, meaning they follow the set rules, standards, and guidelines and will treat you fairly. If anything goes wrong, you can complain to the Financial Ombudsman Service. 

Disadvantages of a Debt Management Plan

A debt management plan can feature various disadvantages. Your creditors are not legally bound to the agreement, so some may not accept it, and others can continue contacting you even when on a DMP. They can continue charging you interest and fees and even take further action, like passing your debt to a collection agency or pursuing court action against you. 

Not all debts can be included in a debt management plan. It can also affect your credit rating, and since no debt is written off, it can be more expensive and take longer than other debt management solutions. 

How Does a Debt Management Plan Work: What’s Covered by a Debt Management Plan? 

A debt management plan works by rolling all the included debts into a single monthly payment to make it more affordable and simplify the repayment process. The debt management plan usually covers unsecured non-priority debts like payday loans, credit cards, personal loans, overdrafts, electric, water or gas arrears, phone contracts or catalogues. 

Costs of an IVA or Debt Management Plan

A debt management plan or IVA can feature various costs, including management fees, set-up fees or monthly fees for the lifetime of the DMP or IVA. Providers usually set up such payments to cover the administration costs of the plan, which can include communicating with the various creditors, negotiating terms and setting up meetings. 

The DMP provider must follow FCA rules and be open and transparent about the costs. The costs can be spread evenly throughout the plan. The costs can be offset by the waivers and interest savings you make with the plan.

What is a Debt Management Plan Application Process? Follow These 3 Steps 

You can apply for a debt management plan through Viva Debt Help using the following simple steps: 

Step 1: Complete the No Obligation Form with Your Debt Information

Take a few minutes to fill in the information on your debts on the online no-obligation form. It’s very confidential and secure and comes with no commitments. 

Step 2: A Qualified FCA-Approved Debt Advisor Will Call You

Viva Debt Help will connect you with a qualified FCA-approved debt advisor who will call you to discuss your situation and guide you through the process. 

Step 3: Find a Suitable Debt-Reducing Solution

The debt advisor will help you find a suitable solution to reduce your debts based on your situation. They’ll consider your current earnings, debt-to-income ratio, and budget to determine how much you can comfortably pay towards your debts. You’re not obligated to accept any of the options.

FAQs 

Can I Get a Mortgage With a Debt Management Plan? 

If you’re wondering can you get a mortgage with a debt management plan, the answer is yes! However, it can be challenging because the DMP can affect your credit rating. You also need to consider the terms you’ll get when asking can you get a mortgage with a debt management plan and whether you can afford both mortgage and DMP payments. 

How is Life After Debt Management Plan Comes to an End? 

Life after the debt management plan ends can be stress-free since you no longer have debts breathing down your neck. You can close the paid-off accounts and revive your financial status. 

What Are Debt Management Plan Reviews?

Debt management plan reviews involve formal assessments of the debt solution. They are done to ascertain that the plan is fair for you and you’re not facing undue repayment difficulties. 

I Am in a Debt Management Plan and Need a Loan; Is it Possible?  

It may be possible to get a loan while on a debt management plan, but your options will be limited, and lenders can set high-interest rates and cap how much you can borrow. The terms of your DMP can also prohibit you from borrowing more money until you complete the plan. 

How Long Does a Debt Management Plan Affect Your Credit Rating?  

Debts on your debt management plan will stay on your credit report for up to six years. 

Conclusion

A debt management plan can be a suitable solution if you have multiple non-priority debts and struggle to keep up with repayments. One of the best ways to access some of the best debt management plans in the UK is by applying through Viva Debt Help. It features an easy online process that connects you to qualified FCA-approved debt advisors who can help you find a suitable and affordable solution for your debts. Request help today through a few simple steps at Viva Debt Help!

ALSO READ:

Disclaimer: All debt solutions should be very carefully considered. The websites advertised in this paid promotion do not provide debt advice. If you complete the form and provide permission to be referred, they will pass your details onto a regulated debt advice solution provider. All the partners they use are regulated by the Financial Conduct Authority to provide debt counselling. The websites advertised work exclusively with trusted debt solution providers. If you proceed with one of their solution options, they may receive a fee for introducing you to them. The websites advertised are lead generation companies who pass your details onto third parties in order to help you with your debt solution.