Guiding people with best available solutions:

  • Single Affordable Payment
  • Freeze Interest Charges
  • Stop Creditor Pressure

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Check your Eligibility in 4 easy steps

What is your approx level of debt?

Question 2

How many lenders do you owe money to?

Question 3

Select what sort of debts you have?

Personal Information

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Debt Management Solution

A debt management plan (DMP) is intended towards helping an individual manage his debts better. He can then pay off the debts at more affordable rates, such that monthly payments are reduced.

There are several advantages that DMPs offer for an individual:

Upon using a DMP, one is only required to pay what one can afford to the creditors. If household bills cost a little more than they did earlier, the arrears can be added up to the DMP. This keeps the accounts up-to-date. Regular ongoing monthly payments still need to be made in any case.

By using the DMP, in some cases, a single payment needs to be made to a financial institution. They manage the payments to creditors for an individual. However, finances sometimes review the DMP at frequent intervals to make sure that one is paying what he can afford.

Frequently Asked Question

Is DMP suitable for you?
Yes, DMP can be an appropriate debt solution if there is some spare money available every month after paying your priority costs like rent, food expenses, and utility bills. We always work with you to work out a budget after meeting all the household’s needs and money left that could go to the creditors.
How does a DMP affect your credit file?
A debt management plan can affect your credit file or credit score because you have to pay less and you won’t be able to pay the repayment amount which you agreed while taking the debts so DMP can give impact on some areas of credit file and default or missed payment can be removed after six years from date it started, even if you haven’t repaid your full debt.
Is DMP similar to debt consolidation?
If we say debt consolidation that involves taking out a loan for repaying your unsecured debts. The loan would be paid back in a longer period as compared to debts. Debt consolidation is lowering the monthly payments, but interest is usually being charged. DMP would not involve taking further credit. In its place, new payment terms can be agreed with your creditors, based on what you can manage to pay.
What debts can be involved in a DMP?
If you’ve dropped your rent or mortgage, household bills so DMP can include them as of your monthly DMP payment. So DMP provides a quick solution to clear them so repaying your debts and not taking any worry and single monthly payment to clear that.

Pros of a  DMP

You have to only pay the amount which you can manage to your creditors, later on, we've put together a monthly budget for you.

If somehow you’ve fallen behind with household bills DMP can help get your accounts back up to date. You ‘just need to make sure your regular ongoing monthly payments.

You just need to do one monthly payment and we can manage the payments to your creditors on your behalf.

We’ll update your DMP regularly to make sure you’re paying what you can manage on a monthly basis.

Cons of a  DMP

Creditors can still call you.

Most of the cases creditors will agree to shrink or stop interest charges, but we can’t do anything if the creditors continue adding interest and charges, this could increase the total amount you owe from them.

In very rare cases Creditors can still take further court action against you, like as a County Court judgment (CCJ)

Creditors may contact the individual, and may or may not stop interest charges. This may increase the total amount that a debtor owes. Legal action by creditors is another potential disadvantage of a DMP.

 Using a DMP may come across as being a feasible plan for an individual, in the event that he has some surplus money available each month. This is after paying priority costs, such as rent, food and utility expenses.

 A DMP does lay effects over one’s credit file and score. The underlying reason for the same is that a debtor uses a DMP to pay lesser than the minimum repayment amount that he initially agreed to pay when he took the debt.

 A DMP isn’t registered upon the credit files as such, but it could lay an impact over certain areas of a credit file. Details pertaining to aspects such as court action, missed payments, defaults will be removed six years prior to their occurrence. This would be even while the debts have not been paid in totality.

 One of the primary advantages of using a DMP is that in the event that one falls behind on house hold expenses, arrears can be made and they can be added to the DMP. They are then a part of the monthly DMP payment.

 It is best to clear the arrears as soon as possible and there are cases wherein the financial institutions help debtors clear the arrears. As arrears are cleared, it implies that amount being paid towards unsecured debts increases.

 Paying the amount to a single financial institution who manages the DMP for a debtor is a more stress free alternative, over managing payments for multiple creditors.

 

How The Plan Works

A lower payment on a regular basis is designed for who those who can’t afford the full monthly payments with creditors. By giving you just one simply monthly payment to make, you will quickly find the situation more easier and less stressful to mange. Calls and letters from creditors are also managed on your behalf.

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