Debt Management Plan

A Debt Management Plan (DMP) is a flexible and informal debt solution which might be suitable if you are struggling to manage your debts (above £1,000) and monthly repayments. Payments in a DMP start from £90 per month depending on your affordability. We do not charge any upfront fees for setting up a Plan.

A Debt Management Plan allows for a new and affordable payment plan to be negotiated with your creditors. where you can repay your debts at a lower rate that is more affordable to you. It is considered to be one of the more flexible solutions, which can allow for ammendments to be made more easily. The plan can also be terminated at any time should your circumstances change.

Starting a Debt Management PLan with us

One of our advisors will have an in-depth chat with you to determine what debt solutions are available. You will be asked to provide details about your income, outgoings, your total debts and any other necessary information required in order to provide you with the correct advice for your circumstances. You will then be given the choice to decide how you wish to deal with your debt.

If it is established that you wish to proceed to with a Debt Management Plan with us, we will write to your creditors to advise them of the change to your financial situation and your inability to fulfill your contractual debt repayments. We will provide them with details of your current circumstances and your proposed offer of repayment. We will also request that they freeze any interest and charges on your accounts (this is not guaranteed) and that they will correspond directly with us for the duration of your plan.

Creditors will advise us if they are willing to accept your proposed offer. Payments to creditors will commence as soon as we receive your first monthly payment. The payment will be distributed to creditors on a pro-rata basis, after the deduction of our agreed monthly management fee.

If you are interested in finding out more about Debt Management then please phone us now on 0800 043 0200 and one of our advisors can chat with you further.

Pros of Debt Management

• A flexible agreement that can be ammended should your circumstances change.
• Interest & Charges could be frozen if creditors agree.
• Creditor pressure eased as you can direct all creditor correspondence to us.
• 1 affordable monthly payment to creditors in the plan.
• We will prepare and administer your plan, including negotiating payments to creditors.
• We will negotiate with creditors on your behalf, so offers are more likely to be accepted than if you try to do this yourself.

Cons of Debt Management

• Your credit rating may be impacted due to making reduced payments towards your debts.
• The duration of your plan will depend on your level of debt. All debts must be repaid in full.
• Repaying debt over a longer period may increase the total amount to be repaid.
• A DMP does not offer legal protection from creditors. They may still take action against you.
• We cannot guarantee that interest and charges will be frozen in your plan, which may result in a longer plan.

Debt Management Q & A

Below are a few of the frequently asked questions we are asked in relation to our DMPs. If you have any questions please feel free to get in touch and we will find the answers you need.