transparent insolvency advice
- A Debt Management Plan (DMP) is an arrangement between you and your creditors, whereby you repay them a reduced repayment each month, proportionate to your available income.
- A DMP could be the best choice for you if you find yourself in a temporary situation financially, for example, if your circumstances have changed suddenly. Many people just avoid dealing with correspondence from their creditors, but at MGA we can talk to your creditors for you. It must be acknowledged that a DMP is not a formal arrangement and creditors can refuse to bend, but very often we have the ability to talk them round.
- Payments are based on what you can afford, not how much you owe.
- A DMP can be a short-term arrangement, or longer term, to suit your particular circumstances.
- We use our experience and relationships with creditors to deal with them effectively on your behalf.
- Your assets are usually protected.
- However, it will take longer to pay your debts as you will be paying a reduced amount each month.
- You should also bear in mind that it is not a legally binding arrangement.
- In a DMP, there is no reduction in the amount of debt that you will owe, simply that the amount you repay your creditors each month is reduced. This will be the case until you are either able to return to your normal repayment amounts, or the debt is repaid in full.
- It is possible for you to work out a DMP yourself, or MGA can set up and manage a plan on your behalf. We remove the stress and anxiety of your debt by dealing with your creditors directly.
- If a Debt Management Plan sounds like the right solution for you call us today – talking to us sooner rather than later will mean that your DMP is more likely to be accepted by your creditors.