Debt Management Plan
A debt management plan (DMP) is an informal agreement between you and your creditors to help pay off all your debts. You agree to repay the debt in full, but in reduced payments which are more affordable for you. Charges and interest may be frozen or reduced but it depends on your creditor.
- A lower monthly payment based on affordability
- Frozen interest and charges where possible
- Support in dealing with creditors
- Flexible plan so payments can change to meet your circumstances
If you are struggling with your repayments but can still afford to make a small contribution then a Debt Management Plan could be the right solution for you.
It may take customers longer to repay their debt on a DMP because their repayments will be lower but more affordable.
Speak to one of our qualified advisers today to see if you qualify for a Debt Management Plan.
Call 0333 577 9890 or complete and submit the debt help form.
How does a DMP work?
In just a few steps from making the first call, you could be on the road to controlling your unsecured debt.
- StepWe will take some details & assess whether a DMP is right for you
- StepWe will refer your case to a licensed debt management company who will review your income and expenditure
- StepNegotiations will take place with your creditors with a view to reducing monthly payments
Is a DMP right for me?
To qualify for a debt management plan, you must have a monthly surplus income of at least £80.
At Michael Alan, our team will assess your individual circumstances before providing a suitable debt solution.
There are some things to consider before managing debts through a DMP:
- It will have an impact on your credit score
- A credit report may uncover the debts being managed through a DMP
- If you try and obtain credit in the future, it may be at a higher rate