Debt Management Plans may seem daunting and complicated, however National Debt Advice can arrange the whole procedure and allow you to rest assured that you have minimal stress throughout.
In today’s financial climate, more people are struggling with their debt problems, as the recession and redundancies place unnecessary stress on household finances, however all of this worry does not make the problem go away.National Debt Advice can help alleviate many of your financial problems. There are many people that struggle to pay credit cards, loans, store cards or catalogues - you are not alone. Advisors are available to help you sort out your payments and deal with all your creditors for you. This is done by reducing and condensing the total amount you pay back so all you have to do is pay one affordable amount each month.
DMP’s can change when your circumstances do giving you better control, whilst still making positive steps to reduce your debt. Debt Management Plans are for people with unsecured debts.
If this sounds like you, then a Debt Management Plan (DMP) through National Debt Advicemay be just the thing to help. Every person is different and is therefore treated in a unique way.
What is a Debt Management Plan?
- A DMP is an affordable repayment programme that can be set up and managed for you.
- A flexible solution to sort out your finances and calculate what you can afford to pay each month.
- All interest and charges are requested to be frozen.
- You pay this amount through the DMP
- The debt management company pays your money to all your creditors (the companies you owe money to) for you.
- A DMP is not any form of consolidation loan and will not get you any further into debt – it is simply there to consolidate your debt without lending you additional funds.
Who can use this service?
- If you have £5,000 worth of debts or more.
- If you have at least two or more debts with either the same or different creditors.
- If you have £100 or more available income per month (after you have paid all your normal household bills).
How does a Debt Management Plan work?
- The first thing you need to do is put together a personal budget which identifies the total household income.
- Then list all the mandatory expenses like rent, mortgage, household bills, food, travel, child care etc.
- Take the second figure from the first.
- What you have left over is your disposable income to pay your credit debts.
Is a Debt Management Plan the best option for me?
A DMP through National Debt Advice is the best solution for people who can afford to make regular payments to creditors in an easy and hassle-free way. We will assist with all options to help you make the best decisions for your lifestyle.
Benefits of a Debt Management Plan:
- 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 the creditors who can deal with them on your behalf.
- Put a stop to all stressful demand letters and telephone calls from creditors.
- Put you back in control of your finances so you know where your money is going each month.
Drawbacks of a Debt Management Plan:
- Extend your payments over a longer term in some cases.
- 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.
What do I do next?
National Debt Advice uses trained advisors to give Debt Management advice and recommend the most appropriate debt management programme for your needs – whether that is a Debt Management Plan or another solution. If you are interested in a Debt Management Plan or any other debt related issues,please take a few seconds to fill out the simple enquiry form at the top of this page.
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