A Debt Management Plan (DMP) allows you to reduce the amount you pay towards your unsecured debt each month so that your payments fit within the budget that you can afford.
The principle behind this type of debt solution is that you cannot pay more than you can afford. As such you simply have to reduce the payments you are making.
By using the Plan you are asking your creditors to accept reduced payments based on what you can afford rather than what they ask for. If they feel the amount you offer to repay is reasonable they will generally agree.
The agreement is informal and therefore not legally binding. This means that it is quick to implement allowing you to get back in control of your financial situation fast. It is also flexibility allowing you to change your payments and start or stop at any time.
If you would like help or advice about a Debt Management Plan please give us a call on 0800 088 7376 or complete the form below to speak to one of our experts
As well as the information found on this website the Government’s Insolvency Service has produced a useful guide to personal debt solutions which you might also find useful: “In Debt – Dealing with your creditors”.
The Money Advice Service (MAS) are an independent service set up by the Government to provide people with free advice about all aspects of personal finances. For help from MAS if you are struggling with debt please follow this link: MAS – Help if you are struggling with debt.
It is also recommended that you read this one page document produced by MAS entitled “Dealing with debt – 5 things you should know”.
More information about the solution is available in the left hand column. However only a brief overview is given here. For more details and advice please see one of our dedicated information websites:
WTFS can advise you about whether a Debt Management Plan is the right debt solution for you however we do not provide an in house DMP service. If you decide to start a DMP we can help by directing you to the appropriate free or commercial DMP service provider depending on your preference. For more information see: Apply for a Debt Management Plan.