How does a Debt Management Plan work? A Debt Management Plan allows you to pay off your debts at a rate that you can afford. It’s suitable if you have non-priority debts like credit or store cards, overdrafts, and private loans. Your DMP provider will try to figure out a reasonable payment method and talk to your creditors.
Which debts am I able to pay off with a Debt Management Plan? You can set up a Debt Management Plan for non-priority debts. These include: •
Bank overdrafts
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Personal loans
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Money borrowed from your friends or family
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Credit card, store card debts, or payday loans
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Catalog, home credit, or in-store credit debts.
Which debts can’t I pay off with a Debt Management Plan? These include: •
Court fines
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TV Licence
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Council Tax
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Gas and electricity bills
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Child support and maintenance
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Income Tax, Social Insurance, and VAT
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Mortgage, rent, and any loans secured against your home
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Hire purchase agreements if what you’re buying with them is important.
Get free debt advice about a Debt Management Plan Before you agree to take out a plan with a fee-paying provider, check that they have been authorized to legally operate. It’s always best to talk things through with a qualified debt adviser before you agree to take out a Debt Management Plan. This is because the debt solution that is best for you depends on your situation. Professional debt advisers can help you to make the right decisions, meaning you’ll be debt-free sooner than you thought if you fully follow their advice.
A professional debt adviser will: •
Treat and tackle everything you say in confidence
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Advise and show you better ways of managing your money
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Never judge you or make you feel bad about your current situation
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Suggest methods of dealing with debts that you might not know about
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Always be happy to talk to you, however small or big your problem is
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Check that you have applied for all the benefits and entitlements available to you.
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You might only need to have one conversation with a qualified debt adviser to make sure that
your plan to achieve or clear your debts is the right one for you.
If you need more support or don’t know where to start, you’re not alone and we are here to help you handle any bad situations. Nearly half of people in debt told us they aren’t sure about the best way to pay off their debts, and that is where a debt adviser can help you. Over eight out of ten people who have got debt advice to tell us, they feel less worried or anxious and more in control of their life again. The people that let their debts build up before they seek advice often find: •
No one else will lend them money.
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Things have flown out of control, and it takes much longer to pay back what they owe.
You can contact a free debt adviser in a way that’s best for you – online, over the phone, or face-to-face.