For the majority, debt is just a part of life. But if not managed efficiently, you could find yourself feeling confused, stress and under pressure.

Yes, it is important to pay your debt but it shouldn’t evoke additional stress, and certainly should not take over your life. By using our Debt Management Plan, MoneyAdvice can give you that reassuring helping hand; helping you pay your debt in a way that suits you.

Money Advice’s can assist getting you a Debt Management Plan that can ease the pressure of tight deadlines and previously agreed repayments that now don’t fit within your financial situation. Using Debt Management Plan can:

  • Adapt your previously agreed payments to an amount that suits you
  • Relieve stress by putting your finances in the hands of professionals
  • Relive pressure by handling contact with the original lender

Leaving you to enjoy the things you love to do whilst paying your debt at a rate and amount that suits you.

*DMPs are available subject to eligibility and acceptance, alternative solutions may be offered. Fees payable if continuing service are provided. Money Advice Ltd may recieve a fee for passing your information onto carefully sected third parties should you decide to use any of their services. To find out more about managing your money and getting free debt advice, visit Money Advice Service, an independent service set up to help people manage their money.

 

But what is a Debt Management Plan?

Here at MoneyAdvice, we’re aware life can have its ups and downs, just like your financial situation. It might be the case that you are no longer in the position to repay at the previously agreed amount. Getting help via a Debt Management Plan allows you to seek professional, expert guidance and not only organise but adapt your current repayment scheme to your current financial position.

A Debt Management Plan is there to provide a solution – overhauling your originally agreed payment plan so once again it’s easy, affordable and stress-free. Backed by their experience and expertise in the industry, through Money Advice’s financial review, organisation, and contact with the original lender, you are again able to repay your debt at your own pace and at an amount that you can afford. It doesn’t get rid of your debt quicker or doesn’t cost any less, but it relieves pressure and allows you to go and live a life – and that’s what truly matters.

All Debt Management Plans are subject to eligibility and acceptance.

Find your solution to debt

If you are unsure of what solution is best for you, click below to read more about alternative Debt Solutions and find the right one for you.

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How Does a Debt Management Plan Work?

The process is a particularly easy one. After we’ve received all the information we need about you and your financial situation, you can sit back and relax whilst we work on bettering your current position and giving you peace of mind.

1. Our in-house Money Advice expert will review your current financial situation

After you transfer the needed information to one of our experts, they will then assess your finances to conclude your monthly income as well as your spendings. This information helps us to work out a bespoke budget in which you can repay your debt whilst having a good amount left over to buy those essentials.

2. We give your lender a call

Don’t worry about having to contact your lender to inform them about this potential change in repayments. After securing a good understanding of your finances, we will contact your creditor to not only notify them of your monetary situation but to ask them to reduce your repayment amount, and to temporarily suspend any additional interest or charges. Your creditors are not under any agreement to oblige to these reductions, but we will do everything in our power to present to them why it’s the right thing to do for not only your benefit but for theirs. You will be the first to know about any developments in your case.

3. And Relax

With a payment plan agreed with your lender, your Debt Management Plan will be activated, meaning your direct debit is reduced and you’re able to live comfortably all whilst your debt is being paid at an amount that suits you. To start the process today, click here to contact one of our MoneyAdvice professionals.

Why a Debt Management Plan Would be Good for you

Individual to You

The new amount you will pay to your lender is concluded from a thorough review of your monthly income and expenditure. This guarantees that it will be affordable for you and allow you to live at ease whilst paying what you owe.

Set Up within a Month

On average, a Debt Management Plan takes 30 days to be implemented to your repayments. This may be extended due to potential complications with your lenders, but that is something for us to worry about – so you can still sit back, relax and let us get the best outcome for you.

The Debt Gets Paid

Ultimately, the plan allows you to reach the goal of fully repaying your debt, whilst you’re still able to afford the essentials. Allowing you to live your life with some of that pressure lifted off of you.

You’re Left at Ease

Everyone needs a helping hand sometimes, and we will do everything in our power to ensure that you can live happily and reassured whilst your debt is being paid at an amount that has been adapted to you. And if your situation changes and you are no longer in need of a reduced payment, the DMP is not a secured contract – you can return to your original payments at any time. To start the process today, click here to contact one of our MoneyAdvice professionals.

The Risks

Affects to Your Credit Score

Being on a Debt Management Plan does have a knock-on effect on your credit score. But with that said, the DMP is not a secured contract – you can leave and return to your original payments at any time. Plus, as a DMP is not a credited solution to debt, your details do not appear on the Insolvency Register.

Possible Arrears

During your DMP, our team at MoneyAdvice will pay your lenders on a monthly (or every 4 weeks) basis, and we only send the payment when we have received the amount in full. So, if your situation means you can only pay weekly or fortnightly, it may be that you fall into arrears due to late or overdue payments. If this is the case, it may be a good idea to look into other ways you can manage your debt. Click here to find your Debt Solution.

A Step by Step Guide to the DMP Process

It is key to remember that everyone’s journey is different but here’s what you can expect on your DMP venture.

Step 1: Discuss your situation with one of our MoneyAdvice Experts

After discussing your circumstances with one of our experts, they will then explore your options that coincide with your specific financial situations; deciphering whether a DMP is the right route for you.

Step 2: Your Proposed Plan

If we conclude that a DMP is a right route for you, we will then construct a bespoke proposal which includes the reduced payment amount and the rate in which you pay it. If you are in agreement, you will have the chance to read through your plan to ensure you understand and agree with everything that we have proposed. This is when you can sign.

Step 3: The Proposal

We present your original lenders with the signed proposal. Once they are in agreement, the DMP plan can be put into effect.

Step 4: The Result

Your reduced repayments will kick into gear, and you will be able to pay back the money you owe at an amount that suits you, all whilst living life not ruled by your debt. You can afford life’s essentials, and get closer and closer to paying your debt in full.


Start the Process Today

If you’d like to inquire about your own Debt Management Plan, click here to contact one of our friendly MoneyAdvice experts today.

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Debt Management Plans (DMP) FAQ

This is a solution for customers with a regular income but doesn’t have enough free cash to meet their debt obligations. It is an informal arrangement, where the customers’ debts are managed on their behalf. It takes away the stress for the customer of dealing directly with the creditors.

Your creditors can take legal action if you do not make payments of the agreed amount or on the agreed dates made between you and the lenders.

Your monthly payments can include multiple debts in one

Monthly payments are manageable and affordable based on what money you have, you won’t need to take out more loans in order to pay off your debts. 

Once you enter into a DMP, we can request to freeze your interest and charges and also for contact from your creditors to stop.

 

It is best to speak to one of our Senior Advisors to determine which debt solution is right for you. A DMP could be appropriate if you don’t want to take out any loans to clear your debts or if your current monthly payments need reducing as they are unaffordable.

Based on the amount you owe to your lenders and your monthly income, we can determine what is affordable for you to pay per month. 

When we know this, we can request that your creditors accept a lower payment to clear your debts and that your interest is frozen. Then one monthly payment is made and distributed to your creditors.

 

The end of your DMP depends on the amount you pay back per month. Also, if your creditors agree to reduce interests and charges, the time period of the DMP can be reduced greatly.