Top 5 Best Debt Management Plan Options (UK) - Write Off Debt Today

Debt management can help you get your financial situation back on track if you’re struggling to keep up with debt payments. Multiple payments for different debts can be overwhelming as they feature different rates and amounts. A debt management plan is a suitable solution that can help you pay back your debts at an affordable rate and reduce the monthly payments towards your debts.  

But what is a debt management plan, and how does a debt management plan work? To help you get started on writing off your debts, this debt management plan review explores some of the best debt management plan services in the UK. You’ll learn more about the highlights of their online debt management plans, debt management plan pros and cons and get answers to questions like how long does a debt management plan last, how long does a debt management plan affect your credit rating, and can I get a credit card while on a debt management plan? Let’s dive in! 

Best Debt Management Plan Services UK - (Editor’s Picks) 

1. Debt Nurse: Best Debt Management Plan UK for most type of debts 

2. Viva Debt Help: Best Debt Management Plan UK for a variety of debts 

Best Debt Management Providers of 2023 in The UK - Full Reviews (Editor’s Picks) 

Debt Nurse: Best Debt Management Plan UK  

If you’re looking for help with debts, Debt Nurse can help you find some of the best debt management plan options. Although Debt Nurse doesn’t offer debt advice, it works with various reputable partners regulated by the Financial Conduct Authority (FCA) to provide debt counselling. Debt Nurse gives you quick access to the most suitable debt management plan options for your situation.  

You only need to complete a quick and easy online form and consent to referral, and your details will be forwarded to a regulated debt advice solution provider. The provider will then assess your financial position, including your income and monthly outgoings and recommend the best solution for your debt.  

Highlights Debt Nurse’s Debt Management Plan Services 

• Privacy and personal data security are guaranteed 

• Highly professional 

• Transparent about fees and terms 

• Friendly and dependable 

• Bias-free 

Debt Management Plan Pros 

• The Nurse Debt website is free to use 

• Confidential  

• Personal information is processed and stored securely 

Debt Management Plans Cons 

• It can only help with unsecured debt 

Viva Debt Help: Best Debt Management Plan UK for a variety of debts  

Viva Debt Help aims to help UK residents find appropriate solutions for different kinds of debt. Whether it’s business debt, council tax debt, credit card debt, debit cards, festive period debt, gambling debt, or income tax debt, it can help you access one of the best debt management plans for debts up to £30000 or more.  

Viva Debt Help is a lead generation company that doesn’t offer advice related to debt management. The platform guides you through the process and connects you to regulated debt advice solution providers. It only takes a few minutes to complete and submit the inquiry form, and your details are passed onto third parties who can help you with your debt solution. 

Highlights Viva Debt Help’s Debt Management Plan Services 

• Only partners with regulated third parties 

• Your data remains secure 

• It helps you understand all your options 

• Impartial 

• Get a solution in minutes 

Debt Management Plan Pros 

• Very professional 

• Friendly  

• Features helpful resources 

Debt Management Plans Cons 

• Every day bills and debts are not included 

123 Debt Fix: Best Online Debt Management Plan UK for Debts up to £30000+

123 Debt Fix connects you to regulated debt advice solutions providers offering some of the best online debt management plans for debts up to £30000 or more. The platform doesn’t offer debt advice but provides free matching services to suitable debt solutions providers. It can help you get solutions on various unsecured debts by completing a no-obligation form with information on your debts.  

123 Debt Fix then matches you with a suitable third-party solutions provider based on your information. The platform features a quick turnaround with friendly support staff ready to answer any inquiries. They’re transparent about their services and constantly update security and privacy policies to protect your data and information. 

Highlights of 123 Debt Fix’s Debt Management Plan Services 

• No obligation form 

• Fast turnaround 

• 100% transparency 

• Friendly support  

• Multiple unsecured debts covered 

Debt Management Plan Pros 

• Data and information security 

• Up-to-date privacy policy 

• Quick process 

Debt Management Plans Cons 

• Only suitable for unsecured debts 

Help My Debts Pro: Best Debt Management Plans UK Covering Credit Card Debts, Personal Loans, Council Tax, and Store Cards  

Help My Debts Pro makes it easy to regain control of credit card debts, personal loans, council tax and store cards. Like other reviewed platforms, it doesn’t offer debt advice. Instead, it features a comprehensive panel of top debt solutions partners regulated by the FCA and connects you to them through a few simple steps.  

You only need a few minutes to complete an online application form with your debts and allow Help My Debts Pro to forward your details to a suitable third-party partner who can offer an effective solution for managing your debt. The platform only works exclusively with trusted debt solutions providers offering some of the best debt management plans in the UK.  

Highlights of Help My Debts’ Debt Management Plan Services 

• A comprehensive panel of debt solutions providers 

• Find a debt solution online 

• Fast responses in minutes 

• Trustworthy  

• Only works with regulated providers 

Debt Management Plan Pros 

• Find a solution from anywhere 

• High data security and privacy 

• Resources available 

Debt Management Plans Cons 

• Not suitable for all debts 

How Did We Choose The Best Debt Management Plan Providers In The UK?  

We considered debt management plan providers offering: 

• A quick application process 

• Free debt assessments 

• Access to regulated debt solutions practitioners 

• Guaranteed data security and privacy 

Types of Debt Management Plans UK (2023) 

Debt Management Plans for All Debts UK 

Debt management plans can help you regain control of all your unsecured debts by simplifying the repayment process and reducing the time it would take to get out of debt.  

Debt Relief Orders UK 

A debt relief order (DRO) can free you from your debts in 12 months and is a suitable solution for people with minimal assets. You can qualify for a DRO if you owe less than £30,000, don’t have valuables exceeding £2,000 and have less than £75 a month as spare income. 

IVAs (Individual Voluntary Arrangements) 

IVAs are legally binding debt solutions and a form of insolvency that can help you pay off your debts in affordable monthly payments over five or six years.  

What is a Debt Management Plan, and How Does it Work?  

A debt management plan is a non-formal agreement with creditors to repay your debts in one monthly payment. It involves rolling all your unsecured debts into a single monthly payment, simplifying the repayment process and making it more affordable. Your existing debt remains intact, but you work out a payment plan that helps you pay off your debt without struggling.  

A debt management provider manages your DMP and deals with your creditors. They work out an affordable monthly payment that is divided among your creditors. They also talk to them and negotiate lower monthly fees, reduced interest rates, and other reductions to help you reduce your costs.  

What is a Debt Management Plan, Expected Features & Factors? 

Waiving Fees 

Agreements in debt management plans usually include creditors waiving all late fees for missed payments.  

Reduced Interest Rates 

Interest rates on outstanding balances are also reduced and can move from something like 20% to less than 10%.  

Pay Loans Off in 3-5 Years 

Debt management plans usually aim to pay off all debts within three to five years.  

You Can’t Apply for Other Loans 

You’ll be restricted from applying for loans or new credit while the debt management plan operates. 

Expected Debt Management Plan Pros and Cons 

Some pros of debt management plans include faster debt elimination, lower rates and monthly payments, a waiver on previous late fees, and fewer calls from creditors. Cons can consist of some creditors not accepting the plan, closing your credit card accounts, some creditors taking legal action against you and negative impacts on your credit score.  

How Long Does a Debt Management Plan Last?  

The debt amount and affordability will influence the length of your debt management plan. Most debt management plans last between 5 to 10 years.  

Types of Debts Covered with a Debt Management Plan UK 

A debt management plan only covers unsecured debts.  

Debt Management Plan Review Uncovers the Costs Of A Debt Management Plan In The UK

Costs associated with a debt management plan include set-up fees, management fees and monthly fees for the plan’s lifetime. Such costs cover administration services, correspondence between the provider and various lenders, and setting up meetings to negotiate terms. The costs are usually not an issue because the interest savings and waivers made possible with a DMP will offset them. 

How to Apply for a Debt Management Plan UK in Quick Steps  

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

Step 1: Complete the Online Form 

Fill in the short online application form to allow an assessment of your debt amount and the number of debts you owe. It’s completely free and confidential and provides an idea of your current financial position with no commitments or obligations. 

Step 2: Get Connected to A Regulated Provider 

Once you’ve captured your details, Debt Nurse will connect you to a suitable debt advice solutions provider. The advisor will conduct an assessment and talk you through the process. 

Step 3: Begin Your Debt-Free Journey  

The provider will discuss your debts and options based on your circumstances. Your list of debts will be assessed to determine how much you can afford to pay towards your debts based on your situation, current earnings, debt-to-income ratio, and assets. 

FAQ’s  

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

A debt management plan can only affect your credit rating for the short term, and it should improve after around ten months of consistent payments.  

Can I Get a Credit Card While on a Debt Management Plan? 

No. You can’t get a credit card or take out new unsecured loans during your debt management plan.  

How Many Debts can I Include in an Online Debt Management Plan? 

There’s no limit on the number of debts you can include, provided the debt management plan covers them. All that matters is you can afford to repay them in a single monthly repayment.  

Can I Take Out a Mortgage while on an Online Debt Management Plan? 

Yes. Debt management plans only affect unsecured debts, and nothing will stop you from taking out a mortgage. However, you must consider how mortgage repayments will affect your affordability.  

What Happens If I Miss Repayments for a Debt Management Plan UK? 

Creditors can cancel the debt management plan if you fail to make repayments on time and initiate legal action to recover the outstanding balance. Always ensure it’s the first payment you make every month to avoid financial consequences. 

Conclusion 

If you’re struggling with unsecured debts, a debt management plan can be an effective solution to become debt-free within a few years. It can make debts more affordable by reducing the interest rate and monthly payments. You can access some of the best debt management plans in the UK by applying through the Debt Nurse platform. It features an easy application process that connects you to debt advice solutions providers regulated by the FCA to provide debt counselling.  

ALSO CHECK: 

• Best IVA Debt Advice & Debt Help Companies UK 

• Best Credit Card Debt Help Options UK 

• Best Debt Relief Order Services UK 

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.