Welcome to Wallet Doctor: the UK's dedicated banking, debt and financial community. Use this site to help give first aid to your finances!
Debt Management Plans
 
A Debt Management Plan is an informal process of negotiating with your creditors to:
  • Freeze interest
  • Negotiate payment terms
  • Provide peace of mind that you are taking action against your debts
 
IVAs
 
An IVA is an official debt repayment plan that, in most cases, includes:
  • The freezing or reduction of interest
  • Reduction of your debt by up to 70%
  • Legal protection from your creditors
 
Equity Release
 
Consider Equity Release as a boost to your retirement income
  • Free up equity in your home 
  • Boost your retirement income
  • You won't have to move house

Comparison of Debt Solution Options

Debt Solution

Advantages

Disadvantages

IVAs

  • IVAs you could Write off as much as 60-70% of your debts

  • Become clear of debts included in the arrangement after 5 years

  • Fees are incorporated into manageable monthly contributions agreed with your creditors.

  • You will not be able to get credit for the length of the IVA

  • Your credit rating will be affected for another year after the IVA is complete

  • Homeowners may have to re-value their homes in the 4th year and release equity to cover debts if the value has increased.

DMP

  • Your monthly repayments will be reduced

  • You may be able to freeze interest on your debts

  • Your debts will not be reduced

  • You may be paying your debts off for a longer period of time

  • Interest may grow if your creditors do not agree to freeze it.

We provide unbiased advice and help for those experiencing financial difficulties.

 
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PPI