Debt Centres - Nationwide Support
If you are struggling to keep up your monthly payments to credit cards, store cards, loans and overdrafts, a Debt Management Plan is a simple solution that can replace all these separate payments with ONE affordable monthly payment
This monthly payment is also tailored to your indivdual circumstanses so you pay what you can actually afford. Where possible demands from your creditors will be stopped and interest and charges frozen.
A Debt Management Plan (also known as a DMP) is an informal arrangement between you and your creditors (the businesses you owe money to) that enables you to repay your debts at a rate you can afford. This payment is then distributed fairly between all your creditors until your debts have been repaid.
A Debt Management plan doesn't just reduce your monthly payments. It will also:
- Consolidate your debts into one low monthly payment as little as £80
- Take control of your debts without a loan
- Reduce or freeze interest and charges whenever possible
- All negotiations with your creditors are handled on your behalf
- You have a single, dedicated point of contact, so you don't have to deal with your creditors
- Help you regain control of your finances
A Debt Management plan also provides the peace of mind and long-term benefits that come from having your debts managed by experts with years of experience and strong working relationships with all the major creditors.
Although the advantages of a Debt Management Plan are significant, it is also important your understand the disadvantages when thinking about a DMP
- No debt written off
- No Guarantee that Interest will be frozen
- No legal protection from your creditors
- Significant increase in repayment period
- Negative affect on your credit rating
You will have to repay 100% of your debt. Creditors will not normally agree to write off any debt.
Creditors are not under any legal obligation to suspend interest or late payment charges. This means that you may pay off less each month than is added to your accounts in interest and charges. As interest is added to your outstanding accounts this may well lead to an increase in the total sum you owe.
A DMP is an informal agreement. This means that once in the plan, you are not legally protected from your creditors. They are therefore allowed to take further action against you if they wish.
Because you are paying reduced amounts each month and interest may continue to be added, your debt repayment period will be significantly increased and may last many years.
Your credit rating will be negatively affected. Default notices will be recorded on your credit file. This will mean that you will find it difficult to get further credit for 6 years and until your debts are repaid or settled in full
Speak to one of our expert advisers today to discuss whether a Debt Management Plan is the best option for your circumstances.
We're here to help, we will introduce you to one of our authorised debt solutions partners. A quick, informal chat to a fully trained UK based debt specialist will enable them to find the right help and information for you and help you to become debt free.
- Nationwide coverage from UK based debt specialists.
- Reduce your debt by up to 70% with UK Legislation*
- There is help available you even if you have low income, previous bad credit or CCJs
Your privacy is important to us. We only ask for information to help reduce your debt.
Mr. D from SalisburyMr. D from Salisbury was paying £250 per month towards two Barclaycards with combined balances of over £6k. He was paying £250 per month of which £180 was an interest charge. Mr. D has been paying £99 per month into his debt management plan since August 2012. £25.50 is retained each month as an administration fee and interest and charges are frozen across all of his debts.
Mrs. S from OldburyMrs. S from Oldbury was paying £475 per month towards £17,500 of unsecured debt to multiple creditors, including high interest charging payday loans. She has been paying £120 per month into her debt management plan since July 2012. £35.50 is retained each month as an administration fee and interest and charges are frozen across all of her debts.
Mr. H from HarrogateMr. H from Harrogate was paying £580 per month towards over £24,000 of unsecured credit, including three high interest charging credit cards. Mr. H has been paying £202 per month into his debt management plan since August 2009. £41.02 is retained each month as an administration fee and interest and charges are frozen across all of his debts.