Debt Management Plans | DMPs | Debt Management N.Ireland
What is a Debt Management Plan?
A Debt Management Plan is an alternative debt solution provided by IVA Northern Ireland when your debt situation does not meet the criteria for an IVA. You would enter a Debt Management plan if you cannot afford your monthly debt payments or are struggling with your debts. A Debt Management Plan also known as a DMP is an informal agreement between you and your creditors where you agree to repay your debts at a lower monthly rate that is more affordable to you. Unlike an IVA a DMP is not legally binding so therefore the creditors can opt out of the arrangement at any time.
A Debt Management Plan can be handled by yourself or on your behalf by a Debt Management Company and can be a great debt solution for a temporary period, when you can't manage financially every month. If you have debts from £2K - £15K a DMP can be a very good debt solution for you.
What are the benefits of being in a Debt Management Plan?
- You can take control of your debts without a getting another loan
- You can regain control of your finances
- You can reduce or freeze the interest and charges on the debt
- There is no need for formal Insolvency Procedures
- You can pay off your debts with one single monthly payment that is affordable to you
- Demands and harassment from creditors usually stop
How long does a Debt Management Plan last?
Debt Management Plans last different lengths of time depending on each individual’s circumstances. You can remain in a DMP until your debt is cleared or you may want to only use it for a short time while you get on top of your finances. If you want to use a DMP until your debt is cleared then divide your debt by your new monthly payment and this will give you an approximate length of time the DMP will last.
When you contact IVA NI and give us a break down of your financial situation we can then draw up a repayment plan that you can afford and we will contact your creditors and ask them to agree to it. Usually your creditors will accept the lower payments if it's the best way for you to repay the money you owe and they may also agree to reduce or freeze interest and charges, so you can focus on paying off the debt itself. If a Debt Management Plan sounds like a debt solution that you might be interested in call IVA Northern Ireland now and we start the process of making you DEBT FREE.
