“A debt repayment plan only covers unsecured debts and arrears, so your household costs including rent and utility bills will still have to be factored into your outgoings and not as part of your Debt Management Plan.
An unsecured loan is any loan not secured against an asset you own, so a store card, bank overdraft, personal loan or credit card would be classed as a type of unsecured loan. It’s the debt accumulated on these accounts that the debt management plan will be based on.
It’s essential that you give priority to other types of bills such as rent, mortgage, gas, electric and council tax. Falling behind will only add to your financial worries – especially because you could suffer serious consequences if you miss regular payments.
When arranging a Debt Management Plan, an advisor will help you assess your financial situation and make suitable allowances. By doing this you’ll ensure your priority debts and day-to-day living costs will be accurately calculated in.
If you need debt help, the best thing to do is seek professional advice. By speaking to a trained advisor you’ll have a clearer understanding of the options available to you.
Debt can be terribly worrying, but with the right help, you can overcome it.”