Debt Management Plan (DMP)
Is a Debt Mangement Plan (DMP) Right for me?
- Let us deal with your creditors for you.
- One Monthly Payment – No more juggling bills.
- Freeze Interest and Charges – We may be able to arrange to have your payments reduced and future interest charges suspended.
- Get Your Life Back in Track Today!
If you are considering a Debt Management Plan as a way of helping you reduce the pressure on your finances you should understand exactly what is involved before you start.
At No Debt Now we believe in Treating Customers Fairly, so much so that we have a group policy in place which you are welcome to read, which explains our business ethos. We prefer things to be transparent and you should understand upfront what a Debt Management Plan is and how it works. We also recommend that you read the Insolvency Service’s Debtor Guide which is a free guide produced by the Insolvency Service, giving you a clear, no nonsense summary of all the different forms of debt management.
A Debt Management Plan can often be the right solution when you are in employment and earning a regular income, but you don’t have enough free cash on a monthly basis to meet your debt obligations.
If you take out a Debt Management Plan through No Debt Now we aim to:
- Negotiate directly with your creditors on your behalf, including asking them to freeze interest payments so your situation doesn’t worsen.
- Handle all the letters from your creditors and ask them to stop sending them to you
- Help you prepare a Debt Management plan to show to your creditors which details your household and personal spending and demonstrates that you are paying back what you can realistically afford
- Arrange to share money you pay into the plan fairly between your creditors
- Ask creditors to ‘write off’ any outstanding debt at the end of the plan
- All you have to do is to pay one single affordable payment every month.
Now in an ideal world this would be a simple process however creditors are under no obligation to freeze interest and charges, nor to write off all or part of the debt you owe them. What’s more during the negotiation process some creditors may continue to charge interest and other recovery charges. We cannot always prevent these charges being levied but these will be paid off as part of your debt management plan. You could also incur additional charges as a result of missing payments whilst your debt management plan is being set up. You should also be aware that as a result of switching to a debt management plan the total amount repaid and the repayment period may BOTH increase. Also, if your accounts are defaulted by your creditors this will be shown on your credit report and have a negative effect on your credit rating.
As with all non-Charity providers of Debt Management Plans you will be charged a management fee for both setting up and maintaining your plan, full details of which you can see in Section 5 of our Terms and Conditions.
Illustrations of the fees charged for our various debt solutions are available Here
Whilst this may sound quite daunting, it’s where our expert advisors can help you by guiding you through the process and coming up with a plan which is both personal and affordable.
Simply call us today on our free phone number 0800 520 0285 or fill in the Contact No Debt Now form here.
Consumers in England and Wales may also wish to consult the Insolvency Service’s debtor guide – In debt? Dealing with your creditors…
Free debt counselling and advice is also available from the Money Advice Service
available at: https://www.moneyadviceservice.org.uk