What are the Benefits of a Professional Debt Management Plan?

The accumulation of debt is a growing problem in the UK, and every day more and more people find that their spiralling debts require payments that they simply cannot afford. There are a number Debt Release Solutions which, depending on your circumstances, could provide a way out of your debt.

One of the most popular and trusted debt release solutions is the Debt Management Plan or DMP. There are a variety of ways in which a Debt Management Plan with a professional debt management agency could provide a solution to your debt woes. A Debt Management Plan is an informal agreement between you and the creditors of any unsecured debt that you may have. It enables you to consolidate your unsecured debt payments into a reduced monthly payment based upon the amount of your monthly income that you can afford to spare, after essential outgoings.

Your Debt Management Professional will collect this one monthly payment then distribute it accordingly to your creditors. They will also deal with any correspondence with each creditor throughout the duration of the plan.

The benefits of a professional Debt Management Plan include:

  • Lower Monthly Debt Payment – You only pay what you can afford, as your agent will negotiate revised payments on your behalf.
  • One Single Payment – Rather than a confusing system of debt repayments of varying amounts at different dates, you make one monthly payment to the Debt Management Plan agency.
  • Stop Interest and Charges – This is not a guarantee, but in the majority of cases your Debt Management Plan agent can negotiate to freeze the interest accruing on debt and waive any charges which were the result of unpayable debt.
  • Tailored to Your Needs – The informal nature of the plan means that the terms of the arrangement can be altered to suit your needs. You will pay only what you can afford.
  • Protect Your Home – A Debt Management Plan can make ensures that you will always have the means to pay rent or mortgage payments because you only make debt payments that you can afford.
  • Easier to Manage Finance – You are helped to draw up a plan of all your financial outgoings and what they involve. You also have your unsecured debt payments consolidated into one payment which makes financial management easier.
  • Avoid Legal Procedures – A Debt Management Plan is a way of addressing your debt problems before they escalate into a legal insolvency situation.
  • Stop Creditors Chasing You – Your Debt Management Plan agent deals with your creditors so you don’t have to. Your reduced Debt Management Plan payments will keep creditors happy and avoid unnecessary hassle.
  • Reduce Stress – All of the hard work involved in Debt Management is dealt with on your behalf including any tricky negotiations which reduces stress.

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