Ask Payplan… What are the alternatives to a debt management plan?
A debt management plan, or a DMP, is only one solution available if you are struggling to maintain payments to your creditors. At Payplan we understand that a DMP may not be suitable for everyone and we therefore provide all of our clients with a range of solutions that may be suitable for them.
Alternative debt solutions include:
- Individual Voluntary Arrangement, IVA – is a legally binding agreement between you and your creditors.
- Bankruptcy – is a form of insolvency where you will be discharged from all of your unsecured debt.
- Debt Relief Order – is another form of insolvency, this too will write off all of your unsecured debt. A DRO is designed for people with low levels of debt and little or no assets.
- Self Help Pack – this is designed for people who do not have enough surplus or a high enough debt level to enter into a DMP or IVA. They are designed to help you set up your own arrangement with your creditors.
The solutions listed above may not be available at all Debt Management Companies.