THE ADVANTAGES OF A DEBT MANAGEMENT PLAN

1. Affordable Repayments

Your monthly repayments are reduced to affordable amounts which fit within your disposable income. This means that you no longer have to rob Peter to pay Paul. For example you stop using your bank overdraft and credit cards to make your debt repayments each month.

2. Single Monthly Repayment

If your payments are managed by a Debt Management Company, then you will be able to make a single affordable payment which is easier for you to manage each month. The Debt Management Company will make all the individual payments for you.

3. Flexibility

The plan is not legally binding and therefore flexible. You can stop paying into the agreement at any time if you decide an alternative solution is better for you.

4. Discreet Procedure

A debt management plan is not included in the insolvency register. It is a private agreement and therefore can be used by professionals, forces personnel and company directors without damaging career prospects.

Where to start

• Choose the solution – Use the “Which way should I turn” form to get your FREE DEBT REPORT
• Ask the experts – use the Beat My Debt Forum
• Call us now – speak to one of our advisors in confidence to see if a debt management plan can work for you.

Take the first step to beating your debt NOW – Call us free on 0800 077 6180

THE DISADVANTAGES OF A DEBT MANAGEMENT PLAN

Although the advantages of a Debt Management Plan are significant, undertaking one is a serious matter. As such, there are some things that you must bear in mind when thinking about a DMP:

1. No debt written off 

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

2. 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.

3. 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.

4. Credit rating effected

Your credit file will be effected. Default notices will be recorded on your credit file. This will mean that you will find it difficult to get further credit until your debts are repaid or settled in full.