More on Debt Management Plans
Seek independent advice
We provide free advice across the UK and will take the time to understand your problems and advise on all of the options available to you.
We are not a debt management company which enables our expert advisors to independently assess your circumstances and advise on your best options and the most suitable of the debt management companies if appropriate.
We have highlighted the advantages of a debt management plan in the table opposite but it is important to be aware that there are disadvantages of a DMP, the most important of which is that debt management companies charge for their services and this can be expensive. You may also find that interest and charges may not be frozen and you may end up paying more than your original debt.
Another downside of a DMP is that it is an informal arrangement and so creditors can change their minds.
This type of arrangement will also affect your credit rating.
How a Debt Management Plan Works
A Debt Management Plan is designed to help people who are having difficulty meeting their commitments to their creditors. It is very simply an agreement between you and your creditors where you will make lower payments that you can afford to give you time to get back on your feet.
This would continue until you can afford to make full payments again or until what you owe is repaid. You can actually set up a plan on your own but this is normally done by debt management companies who will use their experience to negotiate an agreement on your behalf.
Credit Card Debt Management
Credit cards and credit card companies are often a significant part of many people’s financial problems throughout the UK. All cards will be taken account of in your management plan and the credit card companies will be dealt with on your behalf.
Is a debt management plan right for you?
A debt management plan can incorporate all your outstanding loans, credit cards and charge cards. Call us now for a free and confidential assessment and find out if it’s the right solution for you.
Advantages of a DMP
- You pay one monthly payment to your creditors
- You only pay what you can afford
- A DMP makes it easier to plan your finances
- Interest and charges may be frozen
- You don't have to deal with the demands of your creditors every month
- You have the option to leave the debt management plan at any time
Disadvantages of a DMP
- Debt management companies normally charge a monthly fee for their services
- A DMP is an informal arrangement so creditors can change their mind
- Interest and charges may not be frozen
- You may end up paying more than your original debt
- Your credit rating will be affected
Will a debt management plan help?
A debt management plan may well be the ideal solution to your problems. The important thing to take note of is that there is a solution for every debt problem and no matter what your financial problems are the likelihood is that our experienced advisors have already seen it before and will already have a proven solution to hand.
We deal with financial problems every day from the small and straightforward to the more serious and complex, it’s what we do and we’re here to help.
A debt management plan can help in many circumstances and in particular can give you the breathing space you need to get back on track with your finances and your life. Our advice is free and totally confidential so feel free to contact us at any time.
Call now on 0800 007 5021 or email us here
How to request help and advice on Debt Management Plans
If you need the breathing space right now with your current debts then a DMP may be the answer. Fill in the contact details below and one of our advisors will make contact with you.