Debt Management Plans
(Scotland, England, Wales & Northern Ireland)
A debt management plan is an informal arrangement between you and your creditors to pay back the debt you owe them in more affordable amounts.
A Debt Management Plan is a product designed to help people who are in debt and struggling to pay their creditors. Our partners work on your behalf to try and make your finances more manageable by negotiating lower monthly payments with your creditors.
Our advisors will examine your income and expenditure and assess what you can afford as a monthly payment to repay your debts. They will then speak to and negotiate with your creditors for you.
You make one payment to the debt management company, who in turn deal with and pay your creditors directly.
Advantages to a DMP
- A Debt Management Plan is a way to repay your debts in one affordable monthly payment
- One of our debt management partners will deal with your creditors on your behalf to minimise the contact you have with your creditors
- Creditors can often be persuaded to freeze or reduce interest and charges
- You can repay your debts without needing a loan or a remortgage
Disadvantages of a DMP
- Debt Management Plan can affect your credit rating
- Repaying your debt over a longer period of time may increase the amount you have to pay back.
- There are often fees attached to a debt management plan which the debt management company charges to manage your plan.
- The debt management companies will often only manage your non-priority debts such as credit cards, unsecured credit and store credits. Debts such as rent or your utility bills will still have to be managed by yourself. Your debt management company will ensure that your monthly budget always accounts for your previous bills
Contact Debt Advisory Service
For more information on a Debt Management Plan, please contact us on 08000 191 278, Email us at enquiries@debtadvisoryservice.co.uk or simply fill out our Debt Advice Enquiry Form.
