Finding the Debt Management plan that suits you best can be quite a troublesmome process as it tends to rely on personal circumstances. DMP is recommended for people who are struggling with debt, although the plans available to you could be affected by your reasons for being in debt e.g. illness, maternity leave. Therefore, it’s important that you take on board the help and advice that is available to you before coming to an agreement with your creditors regarding a plan. Here are a few ways you can find out more about whether a DMP is right for you:
Depending on your situation, the first thing you should do is contact your creditors directly. If you feel that your debt status is not serious but may get worse in the future, this is an ideal first step to take. Creditors are far more likely to act sympathetically towards your case in this circumstance. This type of approach is known as a self help debt management scheme.
If your situation is a little more pressurising, it is likely that contacting a Debt Management company would be the next best step to take. Companies will charge a fee each month for their services, however these companies can negotiate lower repayments and interest freezes with your creditors without you having to do it yourself. This results in a potential decrease in monthly payments. Your payments to the company go to the creditors, allowing the customer to rest easier knowing that their debt is being paid off at an affordable price.
Ultimately, DMP’s are at their most beneficial in the short term. If you feel that by gaining more of an insight into what DMP’s consist of you will feel more settled, it is always helpful to check up on other personal experiences. There are plenty of examples available online of people who have pursued a DMP and been successful controlling their debts in doing so.
Can you get a debt management plan set up to get your house in order try our debt test to start the ball rolling at debtmanagementservices.org.uk