One thing that you may have noticed about debt, is that are MANY solutions available out there and this can be quite confusing.
One common question that is asked is, 'Do I have enough debt to qualify for a debt management plan?' Debt Management Plans are a great solutions for people who have large amount of unsecured debts which they are having a problem repaying each month, they work simply by letting you pay back a reduced amount every month.
Obviously, this will mean that it will take longer to repay everything, but for many people the lowered monthly repayments are a great help to them.
In many cases, your DMP company will work with creditors to get some of the penalty charges and interest reduced or halted, so you will only be paying back the actually sum of debt itself.
So, how much debt do I actually need to have? To qualify for a debt management plan, you need to show your lenders that what you're attempting to repay every month in unaffordable, but you can repay it back within a reasonable period of time.
The amount of debt that people who use a debt management plan have varies quite a bit.
The actual amount that you owe isn't the most important factor.
Is there anything else I need to know? As a DMP is not a legal agreement your lenders are not forced to accept it.
It is their decision whether or not they do, however if they can see that you simply cannot afford to pay back your debts at the level agreed then it could be a great option to both parties.
It is sensible way to sort the problem out without having to drag it through the courts.
One key point to take into account is that it will take you longer to repay everything - this is one of the downsides of a debt management plan.
It could also cost you additional interest charges.
If you want to read more information about getting a debt management plan, then I suggest you check out my site.