Debt Management Plans (DMPs)
What is a Debt Management Plan and how to let PayPlan shoulder the worry of dealing with your creditors
A Debt Management Plan, or DMP, is an informal arrangement whereby you agree to pay back your debts but at a reduced amount. You can either set up a plan with your creditors directly or use a debt management company to help deal with your creditors on your behalf. In a PayPlan DMP you make one monthly payment based on what you can afford and this amount will be divided amongst your creditors, ensuring all of your debts are being paid.
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Unlike most debt management companies, PayPlan does not charge fees for setting up and handling debt management plans. So you’ll pay no set-up fee or no monthly fees – allowing all of your regular payments to go towards repaying your debt.
Is a debt management plan right for me?
A debt management plan is an informal agreement between you and your creditors whereby you agree to repay your debt in reduced payments that are more affordable for you.
It could be the right solution for you if you have more than £4,500 in unsecured debts and if you are struggling to make the repayments. All debt will be repaid and there is no obligation to release equitable interest or other assets to your creditors.
It might not be the right solution for you if you have a higher amount of debt as depending on how much you can afford each month, it could take you a lot longer to repay back your debts. When you call PayPlan we will advise you of all the available options so you can see whether there is an alternative option that will get you out of debt quicker.
If you are unsure of what is the best option for you, contact PayPlan to discuss your options with our friendly team.
Why choose a PayPlan DMP?
PayPlan don’t charge their customers anything for their DMP services because we believe every penny you pay should go towards your debts. With lots of fee charging companies closing down, we have created an online DMP calculator so you can see how much money you could save if you opted for a free debt management plan.
Simply move the sliders to show the percentage you pay to your current debt management company and to show how much you currently pay into your DMP. Our debt management plan calculator will use these figures to work out how much more money you could be repaying towards your debts.
What to expect from a FREE debt management plan with PayPlan?
Single, affordable, regular payments
You make just ONE PAYMENT every month, at the most convenient time for you – for many people this is just after they’ve been paid. We then use this payment to pay all of your creditors. Read more below if you need help with debt management plans
Convenient online tracking
You can check the progress of your plan at any time on PayPlanPlus.
This free online service enables you to keep tabs on all the payments you make, the amount that has been paid to all of your creditors and allows you to see an estimated time scale of when your debt will be repaid.
Freezing of interests and charges
While PayPlan cannot guarantee to get interest and charges frozen in all cases, we will talk to your creditors and ask them to freeze interest and charges while you make your repayments. We have an excellent reputation within the credit industry and use this to help you.
Friendly and experienced staff
You’ll find our trained advisers understanding of your situation and ALWAYS ON HAND to assist you with any questions you have about your debt management plan.
How about the ‘small print’?
We always ensure our clients are aware of, and understand, all aspects of the debt solutions we advise on. So before committing to a Debt Management Plan, you should be aware that failure to keep to your agreed repayment terms will result in your plan being cancelled. If you fail to meet your payments your creditors might also look to take legal action against you to ensure they get some form of repayment from you.
By entering into a DMP your regular repayments may be lower, however your repayment period could be longer and the total amount payable higher. This is why when you contact us we will always look at a range of solutions – we want you to get out of debt as soon as you can so you can start enjoying your life again.
Like the majority of debt solutions, entering into a Debt Management Plan will affect your credit rating. A DMP is not a formal agreement so creditors do not have to accept the proposal and they can continue to register defaults until you have repaid all your debt. With some debt solutions, your credit rating will only be affected for a period of time. However with a DMP your credit rating could be affected for 6 years from the date of the last Default Notice issued against you, which your creditors can issue at any point during the plan.
PayPlan Debt Management Plan reviews
Payplan have always been helpful, considerate and easy to deal with. They understand the problems we have and are considerate in their response to our enquiries. We would recommend Payplan to anybody who needs help with financial difficulties.
Being able to make affordable payments have taken away a lot of the stress of trying to juggle money every month
Easy to manage, understanding staff that want to support and help you.
Take advantage of our free debt help and advice – Contact us today
At PayPlan, we know that debt is an accepted PART OF LIFE for many people. But we don’t believe that this has to be the case.
We advise on a wide range of practical solutions to help people deal with their debt and get on with LIVING THEIR LIFE rather than just accepting it and struggling to survive. To start putting your debt worries aside, call us free on 0800 280 2816 and have a chat with one of our fully trained advisers.
You can be confident of receiving sensible, sound advice without obligation. When you call we will talk you through a full review of your current circumstances and explain the choices that are available to you – we will also recommend the most suitable solution and assist you with your application.
If you already think that a DMP is the right choice for you, then simply call our advisers today on 0800 280 2816 and take the first step towards regaining control of your life and your debt. And please don’t be put off if our advisers are busy helping our other clients, just fill in our online Debt Help form and we will call you back.