Debt Management Plans

A Debt Management Plan (DMP) allows you to make reduced repayments to your lenders (creditors) over a number of years. Payments are made until the debt is cleared in full or until you are able to make the full repayments again. The repayments are based on what you can afford after a realistic income and expenditure has been drawn up.
We will negotiate the reduced payments with your creditors on your behalf. The payments are then made to us each month and are then distributed to your creditors for you.

Advantages

• You no longer have to deal with your creditors
• Interest charges on all your accounts can be frozen
• You make payments that you can afford
• Your payments are re-evaluated frequently so that any changes to your situation can be taken into account
• You only make one payment a month.

Disadvantages

• Your credit file will be affected
• Your debts will take longer to repay as your making smaller payments.
• Your creditors can take further action against you. But normally they will not as they can see you are paying your debts in good faith.

Important Note
There are many different factors that must be considered before deciding if a debt management plan is suitable. If your debts total to more than £10,000 a debt management may not be the best solution, suitability for a Protected Trust Deed should be considered first.

Debt Management is one of several options available. If you are unsure which step to take to solve your debt problems, CLICK HERE to ask the opinion of our professional debt advisers. This is a totally free and confidential service.