What are the benefits of a Debt Management plan?

Debt Management Plan

 

If you’re having serious debt problems (like many others in the UK) and you’re struggling to keep up with debt payments on things like credit cards, loans and store cards, a debt management plan (DMP) may be right for you.

A debt management plan may be one cure to your debt issues. A debt management plan is an informal agreement between you and your creditors for paying back your non-priority debts.

We can help you work out one set monthly payment, which is divided between your creditors.

Most DMPs are managed by a DMP provider who deals with your creditors for you. This means you don’t need to deal with your creditors yourself.

A DMP is not legally binding, meaning you’re not tied in for a minimum period and can cancel it at any time.

A DMP does not write off your debt but it allows you to repay your creditors at a rate you can afford.

Here are five advantages of registering in a debt management plan. Call Faith Financial Solutions today if it is something you know is appropriate for you.

Credit Counselling Service Provider

Streamline things with single payment only 

With a debt management plan, you will pay an affordable monthly amount to a credit counselling service provider, whose responsibility it is to distribute these funds between your creditors. It’s just one easy payment for you so you don’t have to worry about making several  payments to various lenders each month.

Many borrowers will assist you with lower interest rates

Your debt management plan provider will ask your creditors to freeze interest. However this is not always possible. Some lenders would not stop charging interest but may minimise interest.

Lesser collection notifications 

Tired of receiving a range of creditors’ unwanted calls or messages? You could benefit from fewer collection requests by getting started for a debt management plan. Your debt management plan provider can liaise with your creditors on your behalf.

Reduce Charges 

Your debt management plan provider will ask your creditors to stop late payment charges accruing. However this is not always possible. Some lenders would not stop charging but may minimise those extra costs.

Freedom from creditors

A debt management plan will help you repay your debts at a rate you can afford.

It will help you live within your means and reduce the needs for your take out additional credit to cover your living costs.

Give us a call today and get recommendations to ensure that it’s the best one for you! On debt management plans, or other debt issues you may be facing, you will get free and unbiased advice. We are happy to assist you in gaining financial freedom!