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Debt Management Plan DMP

Debt Management For Unemployed People

Scott Nelson Profile Picture Janine Marsh Profile Picture
By
Scott
Scott Nelson Profile Picture

Scott Nelson

Managing Director

MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.

Learn more about Scott
&
Janine
Janine Marsh Profile Picture

Janine Marsh

Financial Expert

Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.

Learn more about Janine
· Jan 21st, 2024
Could you legally write off some debt? Answer below to get started.

Total amount of debt?

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Featured in...
Debt Management For Unemployed People

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Managing debt can feel like a big mountain to climb, especially when you’re not working. Don’t worry; you’re in the perfect place to find help.

We understand that being unemployed brings its own worries, and managing debt can add to these. With over 170,000 people visiting our site each month for advice, you’re not alone in seeking solutions.

In this guide, we’ll cover:

  • How debt management can help unemployed people.
  • Understanding debt management: the good and the bad bits.
  • How to choose between a Debt Management Plan (DMP) and an IVA.
  • Will a DMP affect your job chances in the future.
  • About MoneyNerd, and how we can help you.

We have a lot of knowledge about debt, as some of our team members have even been in a similar place to where you are now. We understand your fears and are here to help you find the best way to manage your debt and make life a bit easier.

Let’s start by exploring how debt management can be a good choice for unemployed people.

Could you legally write off some debt?

There are several debt solutions in the UK, choosing the right one for you could write off some of your unaffordable debt, but the wrong one may be expensive and drawn out.

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

Debt Management For The Unemployed: Help When You Need It Most

People who suddenly find themselves out of a job, or on state benefits for whatever reason, still have to face paying the bills like everyone else. Yet finding the funds to do that becomes almost impossible in such circumstances. One immediate and obvious solution would be debt management for unemployed people, where all your bills are put together and reduced in size so that you only have one manageable sum to pay off every month.

Debt management for unemployed people and IVAs (Individual Voluntary Arrangements), will actually write off most of your debt as well. This is calculated exactly to suit your own circumstances by a professionally qualified Insolvency Practitioner.

» TAKE ACTION NOW: Fill out the short debt form

Debt Management For Unemployed: Some Background Notes

One of the things individuals constantly ask while taking a determination regarding debt strategies is usually how much the overall debt will be lessened by at the outset. That is the particular large sum which can be written off at the beginning or at the end of the program’s duration. We all ought to carefully consider this carefully while looking at debt management for unemployed people when we sign any papers thus committing ourselves.

To be able to make an application for debt management for unemployed you need to have income more than a particular minimum quantity and have debts of greater than another specific amount and no greater than a certain sum, and these figures can change from one insolvency company to another. Generally, earnings need to exceed these repayments after all the additional normal expenditures have been paid for example mortgage repayments and council tax and power costs. The standard minimal volume of debt is usually about £2,000 although this number might differ. A top value of £50,000 will be imposed in a handful of situations, though by going via a broker or intermediary the applicant can easily arrive at professional advice a lot more suitable to your personal personal situation.

How a debt solution could help

Some debt solutions can:

  1. Stop nasty calls from creditors
  2. Freeze interest and charges
  3. Reduce your monthly payments

A few debt solutions can even result in writing off some of your debt.

Here’s an example:


Situation

Monthly income £2,504
Monthly expenses £2,345
Total debt £32,049

Monthly debt repayments

Before £587
After £158

£429 reduction in monthly payments

If you want to learn what debt solutions are available to you, click the button below to get started.

Get started

Nearly all Individual Voluntary Arrangement plans will usually be drafted over a period of five years dependent on the kind of debt management for unemployed wanted, but in many instances, this could be different. At the closing stages of this, the debt is usually said to be paid and the client exonerated. Any court records of the deficits which have hitherto been registered corresponding to the client’s name will have to be removed from the record as applicable.

Any IVA paperwork will generally be drawn up by a licensed professional insolvency specialist and should be made exclusively to cover the particular needs of the client. Generally, there is simply no off-the-peg remedy to these things since every situation is usually different, and some scenarios are extremely unique. The insolvency specialist will now draft the optimum attributes relating to the client’s very own unique circumstances and create a plan of payments to a key fund generally over five years, although in selected scenarios this could alter.

With a great deal of information available nowadays it is certainly not surprising that debt management for unemployed is actually taken up by so many people. Many of us are generally swamped by these kinds of arrears relief plans all over the place, on Television, In the press as well as all around the world wide web. Now there is at present a marked inclination for sales marketers to telephone consumers by means of their dreadful automatic computer software so that we receive these types of calls completely unrequested. People ought to avoid these companies like the plague. All unrequested phone enquiries need to be viewed with profound suspicion, because debt management is a thing which will need to be considered diligently, and definitely not be hurried into choices without having a second thought, including during an unexpected and unwelcome telephone call.

An IVA (Individual Voluntary Arrangement) is a popular way of getting rid of debt and is seen as a more civilised method than bankruptcy or sequestration. An IVA will leave people debt free in five years or less.

Could you legally write off some debt?

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

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The authors
Scott Nelson Profile Picture
Author
MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.
Janine Marsh Profile Picture
Debt Expert
Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.