Debt management
Debt Management Plan
DMP stands for Debt Management Plan. A DMP is an informal repayment arrangement through which all your unsecured creditors are paid monthly at a level you can afford.
To qualify for a Debt Management Plan you must have a minimum unsecured debt of £1000, owed to two or more creditors. The debt must be in your name and you must also have a minimum disposable income (funds remaining after paying your essential living costs, mortgage/rent council tax etc) of £100 a month.
We will negotiate with the creditors on your behalf and ask them to accept reduced monthly payments; we will also ask them to freeze the interest and charges on your debts. Your creditors are not obliged to do so however, and in some cases may take legal action against you; in these circumstances we would advise and deal with the paperwork. If you have a high debt and pay only a small amount per month, it could possibly take years to become debt free and your credit rating will be adversely affected.
The benefits of a DMP outweigh the disadvantages:
- You make one affordable monthly payment
- You decide when you want to pay it ( when funds arrive in your account)
- We pay all your creditors, you don’t need to juggle payment dates
- Expert support from skilled personnel