Debt management – could it help with secured debts?

Debt Management

If you're finding your unsecured debts hard to repay, and you can't make payments to some of them - don't worry, there is help available.

There are several debt solutions that could help make your unsecured and secured debts manageable and help you address your financial issues; a debt management plan is just one of them.

Could a debt management plan help with secured debts?

Although a debt management plan is designed to help you tackle your unsecured debts, it can also help you with your secured debts, too.

When you enter a debt management plan, your debt management company will help you come up with a budget that helps you to make your payments to your secured/priority debts (like your mortgage/rent) by lowering your monthly unsecured debt repayments to a level you can afford (based on the amount you're left with each month after covering essential costs).

What if you're only carrying secured debts?

If you don't actually have any unsecured debts, but you're finding your secured debts difficult to manage, you should speak directly to your creditor(s). For example, if you're finding your mortgage payments difficult to keep up with, but believe your financial difficulties are only short-term, your provider may suggest you take a short 'payment holiday' to allow you to get your feet back on the ground.

Your payment holiday could last as long as it takes really - and as long as you and your lender are happy for it to continue - to give you time to regain control over your finances before you get back to making payments again.

If you do find yourself struggling with any type of debt you've taken on, you should take a step back from the situation and consider your options. You could contact a professional debt adviser, for example, who should be able to assess your situation and let you know the most suitable course of action you could take.