A Debt Management Plan is a simple and effective way to pay your non
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- By: REFRESH DEBT
What is a Debt Management Plan (DMP)? A Debt Management Plan is a simple and effective way to pay your non-priority creditors. Your counsellor will calculate the amount you can afford to pay after giving consideration to your priority debts - mortgage, utilities, council tax etcetera and day-to-day living expenses. Any money left is then deposited with us as a single monthly payment and then distributed to your non-priority creditors on your behalf. What are the benefits of a DMP? We will negotiate reduced payments on your behalf with your creditors. In many cases the creditors will also agree to totally freeze or reduce the amount of interest being charged on your accounts, giving you the benefit of: •We deal with your creditors on the DMP so you don't have to •Make payments you can afford and reduce your debt •Having regular reviews of your circumstances and your monthly deposit amount changing to reflect your situation •Once we receive your monthly deposit, you have peace of mind in knowing that all of your creditors on the DMP will be paid. Can anyone have a DMP? A Debt Management Plan may not be the most appropriate solution to your particular circumstances, which is why we would arrange a telephone appointment with a counsellor to discuss your individual circumstances and options. How long does a DMP last? This depends on the amount of debt and level of repayment agreed with your counsellor. What effect will a DMP have on my credit rating? If you are not making your contractual monthly payments to your creditors it is likely that your credit rating has already been affected. If you are making reduced payments through a Debt Management Plan many creditors will record this on your credit file. Speak to one of our dedicated debt counsellors today for confidential advice about your financial situation and we will give you the options that are available to you. Author: A Debt Management Plan is a simple and effective way to pay your non-priority creditors. Your counsellor will calculate the amount you can afford to pay after giving consideration to your priority debts - mortgage, utilities, council tax etcetera and day-to-day living expenses. For more information: www.refreshdebt.co.uk