Looking for a Debt Management Plan?

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Important Information
The purpose of this debt test is to assist you to understand what help may be available to you. We can only ever assist you after we have spoken to you on the telephone. The test and the results of it should in no way be taken as our opinion or advice on our part as to the possible solution to your situation.



Example Debt Management Plan
(based on a real client)

Loan £14,763
Credit Card £4,552
Debt Recovery Company 1 £5,917
Debt Recovery Company 2 £1,827
Total Debt £27,059
Payment Before £637
Payment After £159

Total Monthly Saving
£478

 

What is a Debt Management Plan?

A debt management plan is an informal, flexible way to repay your creditors at a rate that you can afford. It’s not a legally binding solution and therefore it is flexible in a way that other solutions aren’t, allowing it to be tailored to fit your specific needs.

You simply make a monthly payment to us and we distribute it to your creditors, removing the worry that you may miss a payment.

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I couldn’t have coped any longer doing what I was doing money wise. That call that day made my life so much easier.
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Success Stories

Don’t just take our word for it, see what our clients say about MoneyPlus and how we’ve helped them.

We are a member of the Debt Managers Standards Association (DEMSA)

DEMSA is an organisation founded to monitor and maintain high standards in the Debt Management industry. All members of DEMSA are bound by the terms of the Code of Conduct established by DEMSA.

DEMSA TSI logos


Am I eligible for a Debt Management Plan?

If you are a resident of the UK, have debts of £1,000 or greater and at least £70 per month disposable income, then you could be eligible for a debt management plan.

How much does a Debt Management Plan cost?

The fees for a debt management plan are split into two parts:

  • An ‘arrangement fee’, which is spread out evenly over the first six months of the plan. The amount of the arrangement fee is confirmed in writing in the initial paperwork. Arrangement fees vary from customer to customer. Payments will begin to your creditors from the first month.
  • An ongoing ‘monthly management fee’ of 17.5% of your monthly payments, subject to a minimum payment of £30 for disposable incomes of £0 – £100, and £35 for disposable incomes of £100.01 – £200.00

 

Will my creditors stop charging me interest?

With a debt management plan we can’t promise that your creditors will freeze interest and charges, and neither can anyone else. However, we have built up a great working relationship with many creditors and we will do our best.

Who are MoneyPlus?

DebtManagementPlan.co.uk is part of MoneyPlus Group, one of the largest and most respected debt management companies in the UK. The business has grown since it was set up in 1996 and now helps over 35,000 clients.

How do I know you’re a genuine company?

We understand that there are some disreputable companies out there, and you want to be careful with your money. MoneyPlus are members of a trade organisation called DEMSA (Debt Managers Standards Association), which follows OFT guidelines and regulated by the Trading Standards Institute.

Debt Management Plan Protocol

DMP Protocol logo

MoneyPlus Group were also one of the first companies to prove that our service met the requisite standards of the Debt Management Pan Protocol. So you can be sure that you are in safe hands.

Getting Free Impartial Advice

To find out more about managing your debt and receiving free debt advice visit www.moneyadviceservice.org.uk or read the article Dealing with debt – 5 things you should know.

How it works…

1Tell us about your finances and the debts you’re having problems with.
2We’ll recommend a debt solution base on your circumstances.
3We’ll contact your creditors and inform them you’re a customer of MoneyPlus.

What Is a Debt Management Plan?

When you are looking into how to solve your debt problems, you hear the term ‘debt management plan’ and many people have absolutely no idea what one actually is, so here we will find out what exactly is a debt management plan?

If you are having problems paying back your creditors (the people who you owe money to), and find yourself falling further and further into debt, a debt management plan allows you to repay all of your unsecured debts at a monthly amount that you can afford, meaning that both parties are happy – you are getting out of debt and your creditors are getting their money.

“Some debts are fun when you are acquiring them, but none are fun when you set about retiring them.” – Ogden Nash

First things first, a debt management plan is not a loan. It is a way to pay your creditors the money you owe them, but in a time-frame that suits you.

Once you have decided that a debt management plan is a suitable option for you then the first thing that you need to do is talk to your debt advisor. Between the two of you, you look into all of your income and expenditure (the money you have coming in and out), all of your debts, and then figure out how much you can afford to pay to your creditors each month. They will take into account all of your outgoings and try to come up with a realistic payment plan. The debt management advisor will then begin negotiations with your creditors and try to get the best deal for you. They will also try and get them to stop, or reduce, all charges and interest that should be applied to your debt. We know there are companies out there that promise that if you are on a debt management plan with them then they can guarantee to stop all interest and charges. This simply isn’t true. The creditors are fully entitled to keep on charging as long as you owe the debt. However, we have built up a great relationship with many creditors and we have a high percentage rate of charges being frozen for our clients.

A debt management plan is an informal debt solution. This means that unlike formal solutions, such as bankruptcy and individual voluntary arrangements (better know as IVAs), it is flexible. This means that it is a solution that allows you to reduce your total monthly payments on unsecured debts should you happen to fall into some financial difficulty. Being informal also means that it is flexible, and the plan may be able to altered should your situation change.

As with everything in life there are both pros and cons to debt management plans, these include, but are not limited, to:

  • Benefits of a debt management plan

  • Making one regular monthly payment allows you better control over your finances.
  • Your creditors may agree to freeze interest and charges on your debts and may also stop other action, such as taking you to court.
  • Peace of mind – in many cases, you will no longer be contacted by your creditors or debt collectors.
  • If you complete the plan, your unsecured debts will be cleared.
  • Your debts must be repaid in full – they will not be written off.
  • Creditors don’t have to agree to a debt management plan and may still contact you asking for immediate repayment.
  • Mortgages and other ‘secured’ debts are not covered by a debt management plan.
  • Will adversely affect your credit rating.

Despite the commonly held belief that a debt management plan is a ‘catch-all’ solution, in reality there may be a better solution available for you based upon your individual circumstances. There are many different criteria for determining the correct solution for you, although it mainly comes down to number of creditors and amount owed.

A good debt advisor will talk you through all of the options that are suitable for you. They will take into account your income and expenditure, and use their experience to judge what the creditors will accept as a payment. They will also strive to get any interest and charges frozen, although this is not guaranteed, and, despite what many debt solution companies may say, no one can guarantee this, it is entirely up to the creditors. Although many creditors understand that accepting the deal and getting something is better than possibly getting noting at all. Plus, and I know this may be quite difficult to picture, your creditors are human beings and this is simply their job, they understand your situation and will generally try their best to help you. They only become awkward, and understandably so, when the come across people that do their best to lie and evade them, and make their jobs difficult. Which, I’m sure you’d agree, no matter what profession you are in, we would all dislike someone who purposefully made our work more difficult.
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