What is a Debt Management Plan?

A DMP is an arrangement between you and your creditors, which is managed on your behalf. Your debts are repaid monthly at an affordable monthly amount (usually a single payment – made on the most convenient time of the month for you). We remove the stress and anxiety by dealing with your creditors directly.

A DMP plan can be a short term solution to see you through a sticky patch, or longer term  to suit your particular circumstances. Payments are based on what you can afford, not how much you owe.

Unlike an Individual voluntary arrangement (IVA) a DMP arrangement is not a formal agreement and whilst there is no guarantee of freezing interest and charges, we have an excellent track record of achieving this through our excellent relationships with the majority of the credit industry.

It is a more flexible arrangement that will help put you back in control without borrowing more money (experience shows that this can just make things worse). With only one payment to make and a realistic chance of getting your interest and charges frozen, your debts will be repaid as quickly as possible.

Once the plan is agreed

A fee is charged to initially set up the plan (an administration charge) which is usually equal to the first and second payments; this amount is calculated using your current income less all your living expenses with the balance representing your monthly contribution.  A small administration fee is taken out of your monthly contribution to cover the costs of distributing the funds to your creditors.

 Key Information about Debt Management Plans

• Unsecured debts only.
• Initial debt advice is free but fees are payable if a debt solution is agreed.
• A key benefit of debt management is the ability to only repay what you can afford each month. A consequence of this is that it will take longer to repay your debts, and creditors do not have to agree to freeze interest and charges. You will receive allowances to pay Secured and Priority debts.

If you woud like to discuss arranging a Debt Managment Plan with your creditors or would simply like advice on the best possible solution for your current financial situation then please call us now on 0800 046 8297 or 01792 459.

Our advice is free, without obligation and in complete confidence.