What Is A Debt Management Plan?
A debt management plan (DMP) can be a great to solution to managing your debt problems. It allows you to reduce your monthly payments on all unsecured debts if you happen to fall into some short-term financial difficulty.
On a debt management plan we will deal with your creditors on your behalf and negotiate payments, usually at a lower amount but over a longer period of time. We will also ask them, amongst other things, to freeze interest on your debt, although this isn't guaranteed.
If you have debts between £3,000 and £15,000 and can make regular payments, then a debt management plan could be ideal for you.
For more information on the debt management plan complete our simple contact form and we'll call you back.
Pros and Cons of a Debt Management Plan
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making one regular monthly payment allows you better control over your finances
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your creditors may agree to freeze interest and charges on your debt and may stop other action like taking you to court (although they don't have to)
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peace of mind – in many cases, you will no longer be contacted by your creditors or debt collectors
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if you complete the plan, your unsecured debts will be cleared
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your debts must be repaid in full – they will not be written off
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creditors don't have to agree to a debt management plan and may still contact you asking for immediate repayment
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mortgages and other 'secured' debts are not covered by a debt management plan
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will adversely affect your credit rating
Further Information
If you have any further question then complete the contact form at the top of page or call 0800 988 7701 to talk to our our Debt Management team for no obligation advice.
Our debt management plan is available in the following countries:
DirectGov - Debt Management Plan
In Debt? Dealing With Your Creditors - Must read guide from the Insolvency Service.
