A Debt Management Plan (DMP) is an informal debt solution that can be used to help you pay back what you owe at an affordable rate. A DMP will allow you to reduce monthly payments towards your debts to one affordable amount. This is done by negotiating reduced rates with your creditors based on your disposable income after completing a full breakdown of your current personal circumstances.
If you’re struggling to keep up with loans and credit cards, a DMP may be able to help. They can also be beneficial if you prefer someone else to deal with your creditors on your behalf.
If you’d prefer to make one set payment each month to help you budget more effectively, a DMP may also help you do this.
Get in touch with a debt advisory service to devise a monthly budget to see if you can afford to make debt repayments.
All unsecured debt - like personal loans, overdrafts and credit cards - can be included in a DMP. Priority bills like your mortgage aren’t usually included.
All your debts are consolidated so you only have to make one single payment each month, making it easier for you to manage your finances.
Remember that it may take longer to repay your debts because you’ll be paying less each month.
A Debt Management Plan is a potential option for paying back non-priority debts like loans, credit cards, store cards and so on, with debts repaid in one single monthly payment.
Loans
Credit Cards
Store Cards
Payday Loan Debt
Previous Energy Bills
Overdrafts
Debt Management Plans are unsuitable as an option for priority debts, such as…
Mortgages
Current energy bills
Rent
Current court fines being recovered by a bailiff
Current council tax arrears
Income tax
Fresh Start UK has helped more than 12,000 people gain control of their finances and become debt-free. If you’re struggling with debt and finding it tough to keep up with your bills, speak to an advisor today.
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24 hour set up.
Flexible.
We have successfully stopped interest and charges for 99.9% of our customers
Informal arrangement based on your affordability.
In place until your debts are paid.
There is no guarantee interest and charges will be stopped.
No guarantee creditors won’t take legal action against you.
No debt write-off, like some other solutions.
Reduced/missed payments to creditors show on your credit file.
Money Helper has replaced the Money Advice Service and brings together the support and services of three government-backed financial guidance providers: the Money Advice Service, the Pensions Advisory Service and Pension Wise.