Debt Management Plan UK - Advice and Help on Getting Debt Management Plan's in the UK

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A debt management plan or scheme is an informal agreement with creditors about how the money owed to them can be paid back, they can sometimes even freeze you interest, and arrange with your creditors to pay in installments over an extended period of time.

When you enter a Debt Management Plan with a company it is required to make monthly payments to the administrator of the plan. The administrator will then distribute this money in equal amounts to the creditors based on the proportion that they are owned

What are the advantages of a debt management plan?

• Easy way of meeting your monthly commitments with one single payment
• Allows you to free up you monthly income to live comfortably
• You could freeze you interest and extend you repayment terms
• Saves you the time and hassle of negotiating with your creditors
• Reduces or removes the harassment from creditors asking for money
• Gives you a clear path and a date when you know you will be finically stable again

In the DMP your monthly payments are calculated at an amount you can afford and distributed fairly amongst your creditors in proportion to the amount each is owed.

Disadvantages of a DMP

A debt management plan is an informal arrangement, so your creditors could change their mind and ask you to give them further payments to avoid further action being taken out against you, they could also decide to start charging interest again. As it is an informal plan you will have to pay back the full amount over a period of time

Another solution could be an IVA, this would mean that once agreed to your creditors cannot change the plan in any way neither are they aloud to contact you, as it's all part of a legally drafted agreement drawn up by an insolvency practitioner

If you would like free iva advice or advice on a debt management plan then you can speak to one of our advisers at Money Dent & Credit Group PLC, simply go to the following website and fill in your details so that our advisers can asses you situation before contacting you, you are under no obligation to make any decisions and it is entirely up to you if you wish to proceed with any plan offered, we aim to give you the best free IVA advice possible to help you make an informed decision. Click here for more information on Debt Management.

"

A debt management plan or scheme is an informal agreement with creditors about how the money owed to them can be paid back, they can sometimes even freeze you interest, and arrange with your creditors to pay in installments over an extended period of time.

When you enter a Debt Management Plan with a company it is required to make monthly payments to the administrator of the plan. The administrator will then distribute this money in equal amounts to the creditors based on the proportion that they are owned

What are the advantages of a debt management plan?

• Easy way of meeting your monthly commitments with one single payment
• Allows you to free up you monthly income to live comfortably
• You could freeze you interest and extend you repayment terms
• Saves you the time and hassle of negotiating with your creditors
• Reduces or removes the harassment from creditors asking for money
• Gives you a clear path and a date when you know you will be finically stable again

In the DMP your monthly payments are calculated at an amount you can afford and distributed fairly amongst your creditors in proportion to the amount each is owed.

Disadvantages of a DMP

A debt management plan is an informal arrangement, so your creditors could change their mind and ask you to give them further payments to avoid further action being taken out against you, they could also decide to start charging interest again. As it is an informal plan you will have to pay back the full amount over a period of time

Another solution could be an IVA, this would mean that once agreed to your creditors cannot change the plan in any way neither are they aloud to contact you, as it's all part of a legally drafted agreement drawn up by an insolvency practitioner

If you would like free iva advice or advice on a debt management plan then you can speak to one of our advisers at Money Dent & Credit Group PLC, simply go to the following website and fill in your details so that our advisers can asses you situation before contacting you, you are under no obligation to make any decisions and it is entirely up to you if you wish to proceed with any plan offered, we aim to give you the best free IVA advice possible to help you make an informed decision. Click here for more information on Debt Management.