How long will your debt management plan last? That will depend on how much you owe in total, among other things, such as how much of your debt you can afford to repay each month – and that’s something that could change over time.

If you’re looking for a debt solution that may be able to change to suit your changing circumstances, one option is a debt management plan. You’ll pay as much as you can afford towards your debts, but those monthly payments could change if your financial situation does.

How debt management plans work

A debt management plan is an informal agreement with your lenders for a reduction in your monthly debt repayments, since you’re unable to keep up with them as they stand. This will mean your debt takes longer to repay, but it’ll help ensure that you can afford your debt repayments alongside your other commitments (such as bills and food costs).

You may also be able to agree a reduction or freeze in interest and other charges on your debt management plan – which can stop your debt from growing, and means that more of each payment is going towards clearing the debt itself.

To enter into a debt management plan, you basically have two choices. You can either set it up by yourself, negotiating with your lenders directly, or you can contact a professional debt management company and let them do the work for you. Note that they may charge a fee for this.

How long will my debt management plan take?

Debt management plans are designed to run as long as necessary – either until your situation has improved enough for you to return to your original agreements, or until your debts have been cleared. So it depends on how much you are able to pay each month, how much you owe – and whether or not your circumstances change before the debts are cleared.

In this respect, a debt management plan can offer a fair bit of flexibility, since your payments could go up or down while the plan is in progress, depending on whether your situation gets better or worse. If there’s a really big change in your situation, you may even find that debt management is no longer appropriate at all.

For more information on debt management visit Think Debt Advice’s debt management page.