Debt Management Plan - Say No to Further Loans

WHAT IS A DEBT MANAGEMENT PLAN (DMP)?

“A Debt Management Plan is an informal agreement designed to allow a person who is struggling to meet their monthly debt repayments the opportunity to make a single, more affordable, monthly payment via a debt management company.”

In return for a management fee, the company passes these payments to the debtor’s creditors until their debts are cleared.

The most important part of a debt management company’s duties should be to negotiate an interest and charges freeze on the debtors outstanding accounts and then regularly ensure that creditors continue this freeze during the term of the Debt Management Plan.

They should also ask creditors not to take any legal or recovery action providing the debtor keeps making their regular payments. Amongst their duties the debt management company also agrees to handle/reply to creditors letters and enquires.

WHO CAN APPLY FOR DEBT MANAGEMENT

• An individual who cannot payback his creditors as and when his payment falls due.
• An individual whose liabilities exceed his assets or expenses are more then their income.
• Normally it is the debtor themselves who initiate the plan unless the debtor is a bankrupt. In this circumstance the official receiver, trustee or bankruptcy courts can do so.

WE CAN HELP

• Homeowner or Tenant or Living with Parents (LWP).
• Joint or Single application can be considered.
• Age Criteria: 18+ (for DM)
• Preferably employed (includes self employed).
• May have applied for a consolidation loan (and been rejected).
• No problem with adverse credit including CCJ's (County court Judgments).
• No problem with poor LTV ratio, declined consent etc.

UNSECURED DEBT Includes

• Credit Cards
• Store cards
• Bank Overdrafts
• Personal Loans (Not HP Agreements and Car Loans)
• Mail Order Catalogues.
• Outstanding balances other than home loans and vehicle loans.
• Business Loans for which you are personally liable.

ADVANTAGES:

1. Debt Management Plan will help in reducing the monthly installments towards unsecured debts with one single affordable payment…….
2. Instead of dealing with different creditors, the debtor will have to deal with one creditor & that’s DMP