We use cookies to give you the best browsing experience. If you close this message or continue browsing, we will take it that you consent to this and we won't remind you again. You can disable cookies in Privacy Policy.

Close
  • Start Live chat
menu

Living on a debt solution

I've been made redundant while on debt management. What happens now?

Posted 16 August 2013

Find out which debt solution is right for you

Get started

Answer a few simple questions

See if you are suitable

Understand your next steps

Debt management plans are flexible, which means that if you have a sudden change in financial situation (for example if you are made redundant), we may be able to change the terms of your debt management plan while you get back on your feet.


Struggling with debt can be really stressful.

That's why it can be a real relief when you get onto a debt management plan. Your payments will become affordable again, and your lenders might even agree to freeze interest and charges.

So if something goes wrong during your debt management plan and you can't afford your payments anymore - for example if you're made redundant - it can bring all that stress crashing back.

But don't worry: debt management plans are flexible. Get in touch with your lenders - or the company organising your debt management plan - and tell them about your new situation. You should be able to come to a new agreement.

At Debt Advisory Centre, we could look over your situation and recommend a course of action that might suit you. We can negotiate with your lenders to alter your debt management plan until you can get back on your feet financially. All you need to do is fill out the form below, and a friendly member of our team will be in touch.


How flexible are debt management plans?

We know that your circumstances can change a lot while you're on a debt management plan. That's why your payments can be increased or decreased to suit the level of disposable income you have (as long as your lenders agree to it).

This article explains more about debt management payments.

If you have a temporary blip in your finances - for example, if you're made redundant but find a new job relatively quickly - we can negotiate with your lenders for a 'payment holiday'. This involves stopping your debt management payments for a few months. Once you get back on your feet, your payments will resume - and any time you missed will be added onto the end of your plan.

This article goes into more detail about debt management payment holidays.


What if my change of circumstances is more permanent?

If your change in financial circumstances is longer-term, it may be best to consider a different debt solution. For example, some solutions (like Individual Voluntary Arrangements and Debt Relief Orders) often involve writing off a certain portion of your unaffordable debts, as long as you agree to pay what you can.

It's best to get in touch with us, discuss your situation in detail and we can recommend an approach that might suit your circumstances.

And remember - debt solutions can help you tackle your problem debts, but they can also damage your credit rating and (in the case of IVAs) affect your home. It's important to know all the pros and cons before you proceed.

by Christine Walsh

Back to blog home

Did you find this useful? Share it with others!

To find out more about managing your money and getting free debt advice, visit Money Advice Service, an independent service set up to help people manage their money.