Debt Management Plans at Debt Fixers
Struggling with debt? We can help!
Thousands of people in the UK struggle to make ends meet every month and find themselves in financial difficulty. Dealing with
debt can be scary and confusing. There are so many debt solutions, how do you know what the best option is?
We are debt solutions experts, offering a professional approach to setting you on the road to financial freedom.
For further information contact us on
0800 707 6109.
Remember, the sooner YOU take action, the sooner we can help you.
What is a Debt Management Plan?
A
Debt Management Plan (
DMP) is a straightforward payment plan designed to help you on your way to financial recovery.
In a
debt management plan, we talk with your creditors on your behalf and restructure your monthly repayments to an affordable amount.
Our
debt specialists will negotiate with your creditors and may be able to have your interest frozen and arrange breaks in your repayments. We will definitely cut your monthly repayments and help you regain control of your expenses.
Repaying debts over a longer period of time may increase the total amount to be repaid. Your ability to obtain credit will be affected in the short term, and possibly in the medium to long term
How can a Debt Management Plan help me?
A
debt management plan allows you to make one reduced monthly payment based on what you can afford rather than what your creditors are demanding.
A reduced monthly payment makes it easier for you to stay on top of your finances, making day-to-day life much easier.
We take away the hassle of dealing with creditors. Once you start your
debt management plan we will deal directly with your creditors to arrange reduced payments and also handle any creditor enquiries on your behalf.
We will negotiate to try to get interest and charges reduced or frozen by your creditors. This can save you money as what you pay goes towards reducing your balance, rather than just paying off the interest.
What are the advantages of a Debt Management Plan?
The advantages of a
debt management plan include:
- You make payments that you can afford.
- Your payments can be reviewed every so often so that any changes to your situation can be taken into account.
- A debt management plan can be used to tide you over until your financial situation improves.
- It can be drawn up by you.
What are the disadvantages of a Debt Management Plan?
The disadvantages of a
debt management plan include:
- Debt management plans are not legally binding.
- Creditors are free to take legal proceedings against you at any time.
- Creditors can continue to obtain county court judgments, a third party debt order or a charging order against a debtor's property; even when they are making every effort to pay.
- Interest is not always frozen and, as you are in default, will continue to accrue at penal rates.
- You may never be rid of your debt.
- You must pay your creditors in full.
- A debt management plan will be noted on your credit record.
Debt Management Plan FAQs
What will a Debt Management Plan cost me?
For debts over £3,000 or if you owe 4 or more creditors you will pay an initial arrangement fee equivalent to the first 2 monthly payments (your creditors will not receive payment on the agreed payment plan until the third month), followed by a monthly management fee of 17.5% of your monthly payment, subject to a minimum charge of £35 and a maximum charge of £100.
Low-cost Debt Management Plans
If your debts are £3,000 or less and you have 3 or fewer creditors you will qualify for one of our specially tailored low cost debt management plans for a one-off arrangement fee of £100 and £20 per month management fee.
Entering into a Debt Management Plan with Debt Fixers
Cooling Off Period
You have a right to cancel the agreement at any time during the first seven days from the date we receive the signed Authority To Act form or the first payment (whichever is sooner). The seven days include Saturdays, Sundays and public holidays. You can do this by writing to us at our registered address, or by email to advising that you wish to cancel. We will then refund to you any fees already paid to us that are cleared funds. After this seven day period fees will only be refunded where we have been in breach of our obligations under the agreement.