Debt Management Plans are an informal arrangement between debtors and creditors designed to minimise monthly payments of unsecured loans such as credit cards, personal loans, overdrafts and store cards.
A debt management plan is most suitable when somebody has a temporary change in circumstances such as reduction in income or rise in expenses and need respite from their creditors normal debt repayments.
A debt management plan replaces all the normal unsecured payments into one affordale monthly repayment