Debt Management Plans

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Debt management plans are provided by the British Columbia Association of Credit Counselors (a non profit organization designed to provide services for those in financial distress).

Debt management plans are for those who can afford to make monthly payments, but need help negotiating with creditors for a bit of lenience. Some people just need a bit of extra time to take care of their finances.

Debt management plans are best for those who do not have many creditors (5 or less), and who have under $5,000 in debt.

Advantages of debt management plans include the following:

• A maximum period of four years to repay.
• Possible interest relief.
• Some debts may be forgiven.

Debt management plans are not legal procedures, but voluntary agreements between you and your creditors. This being the case, it is not necessary to include all of your creditors, and it is also not binding on your creditors. Debt management plans will not automatically stop wage garnishments, so your creditors will need to agree to stop them.

If you believe a debt management plan is the best option for you, click here.

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