A Debt Management Plan (DMP) is an agreement between a debtor and a creditor or a number of creditors. Its purpose is to help manage the debtor’s outstanding unsecured debts and gives a promise to recompense it based on the debtor’s ability to pay.
Generally the debtors who wish to avail of the DMP may apply personally or use a third party known as DMP providers. Many DMP providers are charging fees for the services offered to their clients. However, Debt Consolidation 247 does not charge fees for the full services rendered in your debt management plans.
Debt Consolidation 247’s initial free service is to act on your behalf as an intermediary between you and your creditors. When you choose us, we’ll provide you with experienced and qualified advisers. Their main goal is to negotiate with your creditors persuading them to accept a lower repayment terms and try to obtain a freeze on any further interest that might otherwise be appended to your present debt.
The usual qualifications for debtors who would like to avail of the DMP are those who are genuinely in deep financial crisis, and those who can no longer pay their present debt at an affordable rate.
The process of computing affordability is by creating an ‘income and expenditure budget’. In the expenditure column, high priority is given on essentials such as mortgage/rent, council tax, utility bills, transport and general housekeeping expenses. It is significant that all expenditures are considered so that repayments may be offered to the creditors are sustainable.
This total expenditure is deducted from the total income of the debtors to find out the remainder. This amount is usually called as the ‘disposable income’ which is offered generally to repay the creditors through the DMP.
When you’re through creating your budget, and found that you have an available monthly surplus to pay your debts, you can now proceed using the DMP. If you choose Debt Consolidation 247, we’ll inform your creditors, and present to them with the proposed offer of payments which you can afford.
Our experience shows that most creditors are pleased to accept our proposals. We’ll then set up a Direct Debit wherein we can receive your monthly payments and we’ll do the rest, paying your creditors as per plan. Debt Consolidation 247 will try to find ways to negotiate further to reduce your payments; hence, you need not worry because we’re proactively doing it for you.
In order for you to be updated, we’ll send you a monthly statement to show how much you have paid to each of your creditor. Moreover, we’ll provide you with an online account through which you will manage your plan and view your statements 24 hours a day.
Many debtors have not realized that there are many available ways to be debt-free, and one these is the DMP. The following are some facts about DMP: