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Debt Management Plans can freeze all interest & charges

Pros & Cons of Debt Management

Pros

  • Payments reduced – makes debts affordable, as based on your affordability & helps to reduce stress and helps to ensure mortgage, rent, council tax etc can be paid alongside unsecured lenders as these are accounted for in the income and expenditure.

  • Flexibility of expenditure – helps to ensure affordability

  • Payments are negotiated with Lenders on your behalf –legal obligation to accept payments. Payments are fair to lenders as they are calculated on a pro-rata basis (who owes the most get the largest %)

  • Perceivable that the client may be able to retain assets that would be at ‘risk’ in formal insolvency procedures.

Cons

  • No fixed period of repayment – the duration of the plan is dependent on how much debt you have and if the lenders will agree to freeze any interest or charges. It may be that the minimum payment is less than the interest created by the debt.

  • No guarantee that lenders will freeze interest and charges. Unless creditors freeze interest and charges the time taken and amount to repaid may be higher

  • No protection from lenders/legal action.

  • Unable to deal with HMRC debts – you would have to make arrangements directly with HMRC as HMRC debt cannot be included into a debt management plan

How does Debt Management work?

See if You Qualify

complete our online form and speak to one of our friendly advisors to discuss your options

Quick Chat

If this is the right solution for you, we can start the ball rolling whenever you’re ready. We will help along the way until you become debt free!

Your Choice

If an DMP is the best solution for you, we can start the ball rolling whenever you’re ready. We will help along the way until you become debt free!

Free Debt Advice

Our team is based in Manchester and is made up of real people

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Debt management

A Debt Management Plan or DMP, is an informal agreement to pay back non-priority debts, reducing your monthly payments to a single affordable amount each month.

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