Want to Know How a Debt Management Plan Can Help You?

If you’re experiencing financial difficulties and finding it harder and harder to make your monthly repayments on such things as loans, credit cards, store cards and other unsecured debts, then a Debt Management Plan or, DMP for short, could help you regain control of your finances.

Normally, the amount you pay back each month is lower than what you are currently paying and Debt Management Plans are generally more suitable for people with debts of less than £10,000.

By making just one affordable payment each month, your debt management provider will in turn distribute this to each of your creditors and will continue to negotiate to reduce or freeze interest and charges.

This allows you to properly budget and plan your money each month giving you greater clarity and will help reduce the worry that so often comes with debt problems.

Key Facts About a Debt Management Plan

  • A Debt Management Plan can be set up in a matter of days.
  • A Debt Management Plan is generally suitable if you have debts of £10,000 or less.
  • You will only make a single monthly payment and this will be agreed with your creditors.
  • Interest from creditors may sometimes be frozen.
  • Many debt management plan (DMP) providers charge a fee for their services but some don't. It's important to remember that if you don't want to pay a fee, you don't have to. You just need to choose a free provider.
  • Creditors can still contact you.
  • Your credit rating will be affected.

Do You Qualify for a Debt Management Plan?

To qualify for a Debt Management Plan there is some criteria that you need to meet.

  • Typically, if you have unsecured debts of £10,000 or less you could qualify for a Plan.
  • You need to be a resident of the United Kingdom
  • You will need to have enough disposable income to be able to make a single monthly payment.