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What Happens During A Debt Management Plan?

This Debt Solution is for Residents All Throughout the UK

If a DMP provider identifies the amount that you can afford towards your monthly debt payments and determining that a DMP suits you best, a DMP is then set up. After all the requirements have been sufficed, your DMP provider will contact all your creditors on the debts included in your DMP and relay your current situation along with the confirmation of the amount that you can afford to pay.

Your payments are coursed through your DMP provider that is normally through Direct Debit. The payment you made will be paid to your creditors based on your DMP terms. During a DMP, you don’t have to worry in dealing with your creditors since your DMP provider will do it for you.

What to Consider When on a DMP?

As soon as you commence on a DMP, you have to strictly follow your budget. Also, you need to scrutinize your budget with your DMP provider at least one in a year. Usually, your DMP provider will contact you for this.

If you are fortunate to have a windfall while on a DMP, it’s a good idea to talk to your provider to make sure that the money can be used appropriately. This can help ensure eliminating your debt over a short period. Besides, DMP lowers your monthly payments each month, which means affecting your credit rating.

While you’re on a DMP, interest and charges not frozen. This can still be added on top of your debt. It can’t also guarantee from preventing your creditor is considering court actions against you or seeking further actions to recover the debt. However, it’s unlikely to happen for as long as you remain compliant with your DMP payments. Your creditors will not be deprived to contact you. But they are likely to contact for annual statements or repayment details. In fact, your creditors are urged to have this in place following the standards of the FCA or Financial Conduct Authority.

Is DMP Right for Me?

DMPs are accessible throughout the UK. You can always consider a DMP is you find it hard to cope up with your debt payments. But, you must get free and impartial debt advice before doing so. We can help you get back on track and managed get rid of your debts. Our debt experts can help you create a debt management plan that is perfectly tailored after your needs and budget. Contact us straight away to start your journey towards financial freedom.