Debt management plan. Is it right for you?
A debt management plan (DMP) helps you manage your debts and pays them off at an affordable rate by reducing monthly payments. DMPs from Free Debt Helpline Charity are fee-free.
We will work with you to establish a budget that meets the needs of your household. Any left-over money will be consolidated into one monthly payment to your debts. We do not charge any set ups or monthly fees. Many debt management companies provide DMPs, but could possibly charge a fee.
To consider other things with DMPs:
Your creditors don't have to agree to the payment getting reduced offering a DMP, but even if they don't we will still send them your payments as they have to accept them as your debt repayment legally. your creditors will not receive payments on your behalf from us until your DMP is set up.
You have to be aware that if the creditors carry on adding interests and charges, this can increase the amount that you owe currently.
it will take longer to repay your debts on a DMP than you carrying on making your contractual payments as you will be making lower and more affordable payments.
Finding out DMPs more:
Will DMP be right for me?
DMP will be right for you if you have some surplus money available every month once you have met your priority costs which consists of food, accommodation and utility bills. We will work with you to establish a budget that meets the needs of your household. Any left over money will go straight to your creditors.
How does DMP work?
By making a single monthly payment to us and we will divide it with those you owe money to. DMP helps you feeling stressed out from dealing with your creditors. It proves to them that you are making a commitment by repaying your debts.
What should I do I am far behind with my household bills?
If you are far behind with your priority household bills i.e: gas, electricity or mortgage and built up arrears then we could add these into your DMP so that they are included in your DMP monthly payments.
If you add these arrears onto your DMP we can help you fast as possible to clear them. Once your arrears start to clear up, the amount that is being paid towards your unsecured debts that will get increased.
This makes repaying your arrears stress free and easy as it is all included in the single monthly payment you will make to us. All you need to do is to make sure that you carry on making the normal monthly payment towards your priority household bill.
Do you want to switch your DMP to us?
If you have already got a DMP and is getting charged for it, some of your monthly payment may be going as fees to your debt management company. Switching to a Free Debt Helpline DMP means that all of your monthly payments go towards repaying your debt – so you will be debt free much faster.
Moving your DMP Free Debt Helpline is straightforward. The first step is to learn more about your household budget and debts so that we can advise what is a suitable solution for your debts.