If you are having difficulty with keeping up with your monthly debt repayments, a Debt Management Plan might help you to get back on track.
A Debt Management Plan (also known as a DMP) is an informal agreement that allows you to lower your monthly debt repayments to an amount that is more affordable for your circumstances. Your debt management payment is determined by analysing your income, expenses and financial priorities and seeing what money you have left over to pay to your creditors each month.
You can continue to pay your debt management plan until your debts are repaid in full, or until your circumstances change, or until you decide to opt out of it. It is a flexible plan.
While debt management carries many benefits it should be noted that there are a number of drawbacks. For instance, your credit rating may be impacted if you are paying reduced payments. As you are likely to be paying a lower amount to all your creditors in a plan it will take longer to clear the debt than it would if you made your contractual payments under the original terms agreed with your lender.
You can read more advantages and disadvantages below.
If you are struggling to make your agreed debt repayments, contact us to see if we can help you to make the payments more manageable.
We strive to provide you with the cheapest debt management plans. The table below shows a comparison of our fees and rates compared to a few of the other private debt management companies in the industry.
|Min / Max Monthly
|NO SET UP FEE||£25 plus
£2 per account per lender
£25 - £50
|Money Plus||2 months payments||17.5% of monthly debt payment||£30 (DI<£100)
£35 (DI £100 - £200)
|Debt Advisory Centre||Unknown||£38||£38 - £90 based on 18.5% of monthly payment|
|Harrington Brooks||3 months
(£1,400 max, £240 min)
|£38||£38 per month or 47.5% of monthly payment|
* All information correct as of 12/02/2018. Information may be subject to change.
DI stands for Disposable Income (the money you have avaialble to pay towards your debts each month)
Below is an example of a typical debt management plan and the fees charged by various companies. Lets say the client has £9,800 of debts owed to 5 creditors. After analysing their situation, it is determined that they can only afford £250 per month to creditors. We'll assume for this example that each company has successfully managed to negotiate a freeze on interest and charges and the client is going to pay the debt management plan until completion.
|Duration of Plan|
|NO SETUP FEE||£35 pm||£1,595||45.6 months|
|MoneyPLus||£500||£43.75 pm||£2,368||48.7 months|
|Debt Advisory Line||£0||£38 pm||£1,755||46.2 months|
|Harrington Brooks||£750||£38 pm||£2,372||48.7 months|
Notice from the example above that we are the cheapest debt management company and because we do not add initial fees or added monthly payments, your plan will be completed quicker also.
National Debt Relief will enable you to pay off your debts more quickly and with lower fees. Also, because there is no setup fee if you did decide to cancel early into your plan a large percentage of your payments will not be going towards paying fees.
This plan will suit people who can afford to offer their creditors a set monthly payment. Under this plan you decide what can be afforded and offer this to your creditors until your debts are repaid in full.
This plan will suit people who have only a lump sum payment to offer where thay can no longer afford to offer monthly repayments. Creditors will normally be open to accepting a lump sum payment as full and final settlement of a debt where monthly repayments cannot continue. It is not uncommon for creditors to agree to write off a portion of the debt owing in this situation. It is important to do it right so that you have a record of everything that has been agreed.
If you want to apply for Debt Management or find out further information about entering into Debt Management, complete our application form, filling out as much information as possible.
Apply for Debt Management here
Client Name: Mr S
Mr S was struggling with debts of £25,000 and creditors were looking for payments of £603 per month. After being refused a...
Read more and see other DMP cases
"Just a note to let you know how pleased I am with your services. It was totally hassle free, no phone calls or anything from creditors. Thank you so much."
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We are happy to provide you with debt advice only. We only charge a fee if you opt for one of our debt solutions. Fees will depend on which debt solution we provide and what your personal circumstances are. All fees will be discussed prior to commencement of any service or debt repayment plan.
Please note: From time to time we may refer you to other services providers or charities such as the CAB.
You can get free debt advice from the Money Advice Service – an organisation set up by the Government to offer free and impartial advice to those in debt. Click here for more information.
Star rating : 5/5
Staff are always there to help with any questions you need answered. They take the stress out of your burden, and help to put you back on track with financial worries. I would recommend National Debt relief to any of my friends.
Written on 13/03/2013,
Just to say how happy I am to have joined National Debt Relief. They gave a peace of mind and took the fear of the telephone ringing every day looking for money I didn't have.
If you have any questions about your problem debts you can have an online chat with one of our expert debt advisors.
You can chat to us via your computer or mobile device 6 days a week from 8am - 8pm, Mon - Sat