A Debt Management Plan (DMP) is an informal agreement between you and your creditors. All the debts in your plan are put together and you only have to make one affordable payment to your debt management company on your payday. As a debt management company we make the payments to your creditors for you every month. You could be eligible for a DMP if you live in England & Wales, Scotland and Northern Ireland.
We look at your income and expenses, such as wages, benefits as well as your main bills, including your mortgage or rent, utilities, secured loans etc. We calculate the money left with you and use it to pay into the plan and get you debt free. A Debt Management Plan could be the best option to pay off your payday loans, store cards, credit cards, overdrafts and loans. There are lots of options out there and some may be better for you, so we will always let you know what your options are, so you can make the best decision.
We specialise in Pay day Loan Debt Management Solutions and Credit Card Debt Help, so if you have accounts with Wonga, Wageday Advance, Payday Express, Payday UK, MyJar, Quick Quid, Vanquis Bank, Aqua Card or Capital One and are struggling to pay or have already stopped paying, then we could really help.
Advantages & Disadvantages of Debt Management Plans
We think it really important to know the full pros and cons before going ahead…
Some of the ‘pros’ of a debt management plan are that they are flexible and can be changed or cancelled at any time. They help you get control by only having one affordable, monthly payment to make. You can speak to someone at your debt management company if you have any concerns about anything at all. Your debt management company contacts your creditors so you don’t have to. You can change the amount you pay any time if you need to.
Main Advantages of Debt Management Plans:
1. A DMP replaces multiple payments with one, single affordable monthly payment
2. Your interest and charges may be frozen
3. We review your situation regularly so we can always provide the best help that you need
4. You get control of your debt without having to borrow more
Some of the ‘cons’ of a debt management plan are that there is no guarantee that your creditors won’t take further recovery action (although this is unlikely once they have agreed to accept the payment). Your credit rating will be affected for at least 6 years.
Main disadvantages of Debt Management Plans:
1. Your creditors do not have to accept the repayment proposals
2. Your creditors do not have to freeze interest and charges
3. It may take longer to repay your debts than if you carried on paying a higher monthly amount
If you are struggling to meet your monthly debt repayments and you have disposable income, you may be eligible for a DMP. Call Fresh Start UK Ltd now on 0800 92 472 44 and we will advise you on the best option for dealing with your debt. Initial advice is free and there is no obligation for you to proceed with us.