There are not many individuals who are lucky enough to go through life without at some point having to rely on credit. This could be through credit cards, loan, home shopping catalogues or store cards. For many the commitment is affordable and for many others often through reasons not of their own borrowing gets on top of them and they are eventually up to their necks and over their heads debt that they cannot afford. However dire your debt situation it is usually possible to get back out of debt, however in some cases it can take a considerable amount of time. Nevertheless if you are willing to get help and advice from someone who can help you with your debt management questions and look into solutions to becoming debt free, it is possible to clear your debts in time.

One of the solutions you could give some thought to is a debt management program or service. Such a program can be a very viable alternative to taking an IVA or taking out a consolidation loan. However it does need some careful consideration and the very best advice before choosing the most suitable solution for your debt problem. However you could consider the following when thinking about a “break out of debt” plan.

Do I have credit card and/or unsecured loan repayments that I cannot maintain?

Consolidating my debts is not possible or I don't want to take another loan.

I don't want to do anything as severe as taking an IVA or declare bankruptcy.

If you agree with the above statements then a debt management program might be the most suitable option for you as a way to get out of debt.

A debt management program can be one of the easiest solutions to becoming debt free if you go with a specialist debt management company. They would make an offer to creditors for you to pay them reduced payments for a period of time. The payments would be affordable and would be spread out over a longer period of time than the original term, until your debts were paid off in needed.

Perhaps you have already tried contacting your creditor and their legal team have been less than helpful. If you have been turned down and have several creditors then facing each of them with the chance of refusal can often be too much to bear. However with a company behind you creditors are usually more willing to accept an offer.

Some companies offer a debt management plan free of charge while others will charge a fee, so it essential that you check this out when considering a company. Usually a plan will contain several steps which your personal debt manager will go over with you.

• Your income and outgoings will be looked into along with the types of debt you owe and how much you owe along with any other personal information relevant
  
• The above information is entered in a financial statement which would reveal how much money you would be able to pay out, realistically, each month to those you owe money to.
• Your debt manager would then contact your creditors on your behalf and ask them if they would be willing to accept reduced payment.
• You then agree to make one payment each month to your debt manager who will spread it between your creditors (those you owe money).
• Your assigned debt manager will remain with you throughout the plan and your plan would be reviewed over time.
• The plan will remain in place until you have cleared your debts or until you cancel the agreement. This for instance could be if your financial situation improves and you are able to make regular monthly payments to your creditors.

If you have unsecured debts of at least £8,000 such as credit card or loan owed to at least three different creditors and can afford to pay out at least £100 per month and then this type of plan could be suitable.