Talk to me about debt management plans

[caulkheaded]

I've just gone through the step change debt thing on their website and it's recommended a debt management plan.

Anyone had one / know much about it and can give me words of wisdom?

My DH has a plan through stepchange, it has basically consolidated all his debt into one monthly payment and has stopped any further interest being added to his debts. They review his affordability calculation every year and the amount he pays alters as they see fit.

I think it helps greatly to reduce the stress of having numerous lenders sending you letters and calling you every day as once you have a plan in place they are not supposed to contact you directly (some still do!) It also helps to have an end in sight of when your debt will end.

Thanks. It's step change who I've contacted, and they've said it should be within 9 months to pay everything off. The monthly amount just seems enormous and it's all more frightening when in a big number like that I suppose

Have they done an affordability calculation taking into account all your incomings and outgoings? I'm concerned the amount is so much, if you feel it's not affordable you should speak to them about it as there's nothing worse than worrying about money. For my husband it's really affordable amount per month, and the length of time it will take to pay off is well in excess of 9 months. I know everyones circumstances are different though.

I'm paying off pay day loans and credit cards at the moment, as well as one £3k loan. I guess it's a lot as it'll be more than I pay per month on the larger loan, the rest will pay off the payday ones quickly.