What Is A Debt Management Plan?
A Debt Management Plan (DMP) helps residents in England, Wales and Northern Ireland manage their debts and pay them off at a more affordable reduced monthly amount. Further creditor interest and charges are often frozen. In Scotland, it is possible to agree a Debt Management Plan, however a more legaly binding solution exists known as a Debt Arrangement Scheme.
How Does A Debt Management Plan Work?
Once a Debt Management Plan provider calculates what you can realistically afford to pay towards your debts each month, and that it’s the most appropriate solution for dealing with your debts, your Debt Management Plan can be set up. Once the necessary paperwork is sorted out, the DMP provider will then contact your creditors to explain your situation and confirm the amount you’ll be paying them towards their debt. Many debts can be included within a DMP including Credit Cards, Bank Loans & Store Cards e.g. New Look, River Island, Selfridges. Catalogue Debts can be included also. e.g. Simply Be, Littlewoods and Freemans