Understanding Debt Management Plans (DMPs)
A Debt Management Plan (DMP) is an informal arrangement between you and your creditors, which allows you to repay your debts at a rate you can afford, while being managed by a third party company
With a DMP, you make a single monthly payment to us, and we take care of distributing it to your creditors. This ensures your debts are getting attention promptly, preventing any late fees or penalties from sneaking in.
Interest and charges:
Creditors may agree to stop interest and charges, but this isn’t guaranteed.
The DMP avoids the formal route which could be beneficial for an individual who works in the financial sector.
A DMP offers no legal protection so creditors can still contact you.
On a DMP your debts must be paid in full, depending on your debt level and affordability this could take a while. Its also worth taking into account that interest and charges may not be frozen which could also increase the DMP term.
Your credit score will be affected and will show for 6 years.
A DMP only covers non-priority debts such as,
– Credit Cards,
– Payday Loans etc.
If you have any questions about the above or would like further guidance our team is here to help.
*Please note, entering into a debt solution can affect your credit rating for at least 72 months, fees may be payable if ongoing services are provided. A follow up call will be required to confirm details outlined in your enquiry, at which point we will be able to discuss which solutions you qualify for.