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Debt Centres - Nationwide Support



UK Legislation could reduce your debts by up to 70%*
Reduce your monthly outgoings with a Debt Management Plan

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.

Advantages of Debt Management

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.

Are there any disadvantages to a DMP?

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
  • You will have to repay 100% of your debt. Creditors will not normally agree to write off any debt.

  • No Guarantee that Interest will be frozen
  • 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.

  • No legal protection from your creditors
  • 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.

  • Significant increase in repayment period
  • 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.

  • Negative affect on your credit rating
  • 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.

About Debt Centres

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
 
Debt Management Example
Here's an example of how a Debt Management Plan can make your debt affordable
How your finances may look...
Unsecured Loan:
£6,000
Credit Card:
£3,000
Store Card:
£2,000
Total Owed:
£11,000
Approx. Monthly
payment:
£385
With a Debt Management Plan...
Approx. Monthly
Payments:
£150
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Debt Solutions
There are many debt help options available if you are struggling with debt. To learn more about each option click on the buttons below.
  • Debt Management

    A debt management plan is designed to help people who are struggling with their debts. If you owe at least £1,000 of unsecured debt and can afford to pay at least £80 per month or £20 a week then this could be an option for you.



  • IVA

    If you owe more than £5,000 and can afford at least £80 per month or £20 per week an IVA might be an option for you. An (IVA) is a Government Scheme to help those with unaffordable debts. An IVA lets you repay all your debts in a single monthly payment at a rate you can really afford.

  • Bankruptcy

    Bankruptcy is when you admit legally that you can't pay off what you owe to your creditors. You can do this as either a private individual or a business. You can also have bankruptcy imposed upon you, usually by creditors who are trying to recover money that you owe them.


  • Trust Deed

    A Trust Deed is help for those with unmanageable debt, exclusively for Scottish residents. It enables you to repay as much of your unsecured debt as you can within an agreed timeframe (usually 4 years). On completion, any remaining unsecured debt will be legally written off.

Fees & Key information

These debt solutions are designed to help you find the most affordable way out of debt. Fees maybe payable dependent on the solution recommend to you. By law Debt Solutions Companies must be clear about any fees payable. Click here for more details on Fees and Key Information

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Case Studies
  • Mr. D from Salisbury

    case study 1 Mr. 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 Oldbury

    case study 2 Mrs. 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 Harrogate

    case study 3 Mr. 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.