Debt Management Plans | Debt Management London

If you can't afford your monthly debt payments then a Debt Management Plan may be the right debt solution for you. Debt Management Plans (also known as DMPs) is an informal agreement between you and your creditors to repay your debts at a lower monthly rate that is more affordable to you.
A Debt Management Plan can be handled by yourself or on your behalf by a Debt Management Company. It can be a great debt solution for a temporary period, or when you can't manage financially every month. Because a Debt Management Plan is informal, you or your creditors can opt out of the agreement at any stage.
If you have debts from £2K - £15K a DMP can be a very good debt solution.

• You can take control of your debts without a getting another loan
• A Debt Management Plan is an Informal Arrangement, so you have complete control over it
• There is no need for formal Insolvency Procedures
• You can reduce or freeze the interest and charges
• You can pay off your debts with one single affordable monthly payment
• Demands and harassment from creditors will stop
• You can regain control of your finances

The length of time of a Debt Management Plan lasts depends on how much the debt is, what your monthly payments are and how long your circumstances will remain the same. You may want to remain in the plan until the debt is cleared, or you may see it as a more temporary measure. You may have little debt to pay off and have a lot of disposable income every month, or you may have higher debt and less disposable income. Every situation is different.
If you want to remain in the Debt Management Plan until the debt is paid in full, a rough guide of the duration of the plan can be obtained by dividing your total debt by your new monthly payment amount giving you an approximation of the total number of months it is expected to last.

When you contact us and tell us about your financial situation we can then draw up a repayment plan that you can afford and we will contact your lenders and ask them to agree to it. Usually your creditors will consider accepting lower payments if it's the best way for you to repay the money you owe and they may also agree to reduce or freeze interest and charges, so you can focus on paying off the debt itself. If a Debt Management Plan sounds like something you might be interested in, you can discuss it with us at Debt Advice London further, in confidence and for free. Contact us via the contact details below.