Tired of multiple monthly debt payments? Want to resolve it in a go? What if we say we can combine them as a single payment at an affordable rate? Yes, we are talking about a fine Debt Management Plan that would reduce all your stress to pay off multiple debts through a single monthly payment reducing your time of repayment, making it an easier and smarter process. Abbreviated as DMP, Debt Management Plan is an informal arrangement between you and your creditors that allows you to repay all your debts at affordable rates. During your DMP, you can also repay your debts with a Lump-Sum value by agreeing on discounted settlements.
The Debt Management Plan or DMP is primarily beneficial to pay off non-priority debts which include:
● Overdrafts
● Personal Loans
● Bank Loans
● Credit Card
● Store Card
● Payday Loan
● Building Society Loans
● Catalogue, Home Credit or In-Store Credit Debts
Get Debt-Free With These Advantages
● You only pay what is affordable after your household expenses.
● Single payment for multiple creditors
● Easier & faster process to repay all debts
● Lower monthly payments to service debts
● Access to in-depth financial education with smarter budgeting strategy
● Reduced negative credit score
● The least distractions call from creditors
● DMP is flexible i.e, you can terminate your plan at any time.
● Conceivable waiver of late fees
● Expert guidance and supervision over repayments by an accredited agency
Things To Take Under Consideration
● DMP won't help you with secured debts
● A counselling agency applies charges fees to work on your debt management plan
● Must be consistent in monthly payment or risk voiding the plan
● Must be patient for 5-6 years to pay off all your debts
● Can't get new credit cards or other loans during the respective duration of your DMP
● The creditors are not obliged to freeze interest rates and charges.
● Certain debts such as arrears of council tax can't be included in your DMPs as there's a risk of action against your debts. However, other solutions such as IVA may include the arrears of priority bills.