Jump to content


Debt Management Plans: A brief guide


style="text-align: center;">  

Thread Locked

because no one has posted on it for the last 3758 days.

If you need to add something to this thread then

 

Please click the "Report " link

 

at the bottom of one of the posts.

 

If you want to post a new story then

Please

Start your own new thread

That way you will attract more attention to your story and get more visitors and more help 

 

Thanks

Recommended Posts

What is a Debt Management Plan?

A Debt Management Plan (DMP) is an affordable repayment programme for your debts. You pay a single payment to an independent debt management company who distribute this payment amongst your creditors. A DMP is an informal agreement, by having one you are not regarded as someone who is ‘insolvent’.

 

Can I have a Debt Management Plan?

Each DMP company will have their own rules. It is generally the case that you will need to owe in the region of £4,000 and have at least two difference debts outstanding. You will usually need to have at least £50 a month that can be used to pay into the DMP.

 

Who can use the service?

A DMP is a good option for people who can afford to make regular payments to their creditors and want an easy, hassle-free way to pay. Do consider all options so that you can make the best choice.

 

Will my interest and charges on my debts get frozen?

Creditors do not have to freeze interest under a DMP. The debt management company will have to persuade each creditor that it makes sense for them to freeze interest and charges to avoid the debt increasing.

 

Will I be charged for a DMP?

You may come across companies who offer to arrange a DMP for you if you pay a fee. These companies will also charge you a monthly fee for as long as you have a DMP with them. Be very careful about agreeing to get involved with these companies because there is no need for you to pay for a DMP. It is possible to have a free DMP as there are a couple of organisations that provide them at no cost. Free DMP providesr will use all of any payment you make to reduce your debt. Your creditors will make a voluntary payment to the DMP provider to cover their costs

 

Will it affect my credit rating?

If you miss payments on a credit debt, this will be recorded on your credit reference file by your creditor whether or not you then set up a DMP. This will usually make it harder for you to get credit. Some creditors may also ask for a note to be put on your credit reference file to say you are on a DMP.

 

This information only provides a brief overview, it should not be considered as full advice. If you believe that a DMP is likely to be the best option to help you with your debts it would be vital to seek impartial advice from one of the debt advice charities such as the Citizens Advice Bureau, Stepchange, Christians Against Poverty or ourselves.

 

For further information about debt management plans please take a look at our fact sheet HERE.

For Free, Confidential and Independent advice: 0808 808 4000

Monday - Friday 9am to 9pm // Saturday 9.30am to 1pm // 24-hour voicemail. Please leave a message to request an information pack. http://www.nationaldebtline.org // http://www.mymoneysteps.org

Link to post
Share on other sites

style="text-align: center;">  

Thread Locked

because no one has posted on it for the last 3758 days.

If you need to add something to this thread then

 

Please click the "Report " link

 

at the bottom of one of the posts.

 

If you want to post a new story then

Please

Start your own new thread

That way you will attract more attention to your story and get more visitors and more help 

 

Thanks

Guest
This topic is now closed to further replies.
  • Recently Browsing   0 Caggers

    • No registered users viewing this page.

  • Have we helped you ...?


×
×
  • Create New...