If you are struggling with unmanageable unsecured debts and you want professional help, there may be at least two options available to you.

The first is an IVA (Individual Voluntary Arrangement) – a formal financial agreement between you and your unsecured creditors in which you’ll be required to pay as much as you can afford for the duration of the agreement (which, in most cases, is five years).

The second is a debt management plan, which is an informal financial agreement between you and your unsecured creditors. A debt management plan involves a change in the way you repay your debts, so you can repay them at a rate you can afford.

The question is… which one would be more suitable for you?

An IVA might be more suitable if you are struggling with an unmanageable level of debt that you can’t afford to repay within a reasonable period of time.

A debt management plan might be right for you if you can’t keep up with your debts but you can afford to repay them within a reasonable period of time (albeit under different terms).

There are, of course, other factors that will determine which approach is more appropriate – their impact on your credit rating, to name one. You should seek professional debt advice if you want to know more.