Debt management plans are any statements which available when you debt some money to bank or any creditor. Usually these plans are written and signed by the person who debt (which is called debtor) and the person or parties who lent (which is called creditor). These plans consist of so many requirements which are binding the debtor and creditor so that both of them can be understand about the right and obligations.
For example if you lend some money to the bank to buy house or to develop your business. Firstly you need to complete some requirements before you can sign debt management plans, the requirements such as your identity card, your business background and your bank account. Creditor will check all of your data and survey by direct interview. It is useful to avoid any problem before they lend you some money. They also check your bank account so they will know about your cash flow and whether you ever get blacklist from central bank.
After all complete and agreed by the bank or creditor, they will invite you to read debt management plans formally. Don’t forget to read all statements or agreements one by one before you sign it, and ask to the creditor about any statement that you don’t understand. It will avoid you to get misunderstanding. These plans are indeed important also for creditor to avoid the bad debtor.