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Debt Management Plan

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One of the worst things about having serious debts is the feeling of being out of control. Debt Management can be a way of putting you back in control of your finances - and bringing your payments down.

How large are your debts?

If your debts are not too large (below £10,000) and you have a regular income, a Debt Management Plan could be an option for you.

With a Debt Management Plan, a provider negotiates payments to your creditors on your behalf. Once an agreement is reached with all your creditors, you pay a single, monthly amount to that provider.

A Debt Management Plan usually means lower payments over a longer period of time, and it can include concessions such as freezing interest.

Debt Management FAQs

How long does a Debt Management Plan last?

The length of your Debt Management Plan (DMP) depends on your individual situation - your level of debt and monthly surplus. If creditors freeze interest and charges, the length of the DMP can be dramatically reduced.

If your circumstances improve and your payments can be increased, your DMP can be completed more quickly.

Will my creditors agree to debt management?

Creditors know that an affordable payment proposal is in everyone's best interests. Creditors are not legally obliged to accept different repayment terms, but our trusted partners' industry experience means that they have built up excellent working relationships with organisations throughout the credit industry. In many cases, they are able to negotiate reduced payments and frozen/reduced interest on their client's debts.

Can I stop my Debt Management Plan when I like?

You are free to stop your DMP at any time, but it's good to provide notice so that our partner can inform all your creditors. If you are experiencing further financial problems and cannot afford the payments, please let our partner know as they may be able to restructure your plan.

Please note that once the plan is cancelled, creditors may resume interest and charges if they have been frozen.

What if my Debt Management Plan fails?

If your Debt Management Plan fails, your creditors will pursue you for the full outstanding balances and your debt is likely to increase as a result of fees charged.

What are the advantages of Debt Management?

A Debt Management Plan will:

  • Combine all your unsecured debts into a single monthly payment based on your circumstances
  • Depending upon the outcome of negotiation with your creditors, reduce or freeze interest and charges on what you owe
  • Give you someone who understands and has a good relationship with your creditors, who can deal with them on your behalf
  • Significantly reduce the correspondence with your creditors
  • Put you back in control of your finances so you know where your money is going each month

What are the disadvantages of Debt Management?

Debt Management Plans are not for everyone, so talk to a professional if you are unsure about what to do.

You should be aware that a Debt Management Plan may:

  • Extend your payments over a longer term
  • Not always result in the reduction of interest or charges for every creditor
  • Not necessarily stop all correspondence or phone calls from creditors
  • Not cover any debt secured on assets or tax arrears
  • Impact your credit rating

Talk to our partners, no matter how large your debts may be

Our partners are experienced in answering debt questions covering a wide range of situations. Their specialist Debt Counsellors will ensure you have all the information you need to choose the right debt solution.

For more information regarding a Debt Management Plan, call us now on 0808 163 9579 to speak to an advisor or complete the form below.

Complete this form and we'll find the right option for you

Call us on our freephone number 0808 163 9579

Replay video
 

I understand I will be contacted. Privacy policy

* required field