For those considering a debt management plan, one major consideration should be the long term sustainability of the plan and whether you could stop it or change it in the event that your circumstances demanded it.
Can I Stop My Debt Management Plan?
The short and simple answer is yes. Debt management plans are informal agreements (unlike IVAs). They are arrangements between you and your creditors that are designed to ensure you are paying a reasonable amount based on what you owe and your income. So if something changes in your personal circumstances, rather than simply stopping the plan, we would recommend getting in touch with us to find out whether or not we can renegotiate the terms of your debt management plan.
If you do want to stop the plan though, you can. However, you must be aware that by doing so, your creditors might begin charging non-payment fees and interest on your debts again.
If you do intend to stop a debt management plan, you should give us as much notice as possible in order that we can contact the relevant creditors.
A debt management plan is designed to make your debts manageable to you. The monthly payment you make is supposed to be affordable for you based on your income and reasonable for your creditors based on what is owed to them.
Change of Circumstance During Debt Management
We know that situations can change though! You might lose your job, switch positions or even get a promotion!! All sorts of things can change that means your income changes and, ultimately, that your debt management plan may need to change to reflect this.
As soon as you are aware of any changes to your income, you should let your debt management plan provider know as soon as possible. It could be that your regular monthly payments need to be adjusted to account for the changes.
One of the major benefits of this type of plan is the flexibility. Your regular payments do not necessarily have to stay the same for the entire duration of the plan. Things can change and this plan can often be tailored accordingly.
If you’re struggling with debts, contact MoneySolve today for confidential advice.