Published in on Tuesday, February 24 2009 by Ideal Debt Solutions
If you have debts you simply can’t repay, a debt management plan – or DMP – may be the right solution for you.
A DMP may also be the ideal way out of debt if you have equity in property but you don’t want to re-mortgage your property or to take out a secured loan.
Or if you don’t qualify for an Individual Voluntary Arrangement (IVA) because your debts total less than £12,000 and owe money to only one or two different companies – a DMP may be ideal.
Similarly, if you don’t want other people to find out about your debts, and/or you need only a short term solution, a DMP could help.
The advantages of a DMP are that someone else will talk to your creditors on your behalf and negotiate one affordable monthly amount to your creditors. Your payments are based on your income, but none of your debts are actually written off. Interest payments are stopped and a debt management plan is open to both homeowners and tenants. It is flexible in that if your circumstances change then you may be able to amend your payment to suit your ability to pay.
One of the best things about a debt management plan is that it is very private; you don’t go on an official register and your assets aren’t usually looked at.
So if you meet some of the criteria above, a DMP is worthy of consideration, but always seek advice from experts with many years’ experience in debt management.