Being in debt can be very stressful for any person; you start thinking that you’re stuck in a spiral of debt that just won’t go away no matter what you do and this can be extremely daunting. Well, even if that’s the case with you, you can rest assured that you won’t have to keep making those payments for the rest of your life – there are certain agreements that help you settle your debts with your creditors based on your circumstances. Check out thelondoneconomic.com/lifestyle/money/iva-or-debt-management-plans-whats-the-best-option-for-you/07/03/ to learn more about your options.
A Debt Management Plan is often the agreement that most people go for so they can pay back what they owe. In this agreement, you have to owe back the full sum of money you owe but in reduced payments that you can afford so that your debts don’t weigh too heavily on you. There’s no eligibility criteria for this DMP and it facilitates you to a great extent. However, there are certain things about DMP that might not make it the best option for you.
If you owe someone a lot of money, your DMP agreement with them can hold you liable to them for a very long time before your debt is gone. In the meantime, you’ll still be charged interest b your creditors for a long time too. Also, your creditors can even take legal action against you even if you’re paying them back but this is very unlikely.
If you own a property and your debts are much too hard to live down, you can even opt for an Individual Voluntary Agreement; this legal agreement between your creditors and you holds that you pay back your debts within a certain time frame, after which the remainder will be written off.