Numo

Debt Management Plans may freeze interest & charges

May not be suitable in all circumstances. Fees apply. Your credit rating may be affectedMay not be suitable in all circumstances. Fees apply. Your credit rating may be affected

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 –Creditors are not legally obliged to accept payments. Payments are allocated 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?

Get started today

Numo does not provide Debt Management Plans. We can refer you to a third-party provider to discuss this option.

A confidential conversation

A third-party DMP provider will assess your circumstances and explain the terms and any fees. You can then decide whether to proceed with that provider.

Your Choice

A third-party DMP provider will assess your circumstances and explain the terms and any fees. You can then decide whether to proceed with that provider.

May not be suitable in all circumstances. Fees apply. Your credit rating may be affected

Talk to Numo

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

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May not be suitable in all circumstances. Fees apply. Your credit rating may be affected

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