"There are many debt management plans available and we help you choose the one that is right for you!"
What is a Debt Management Plan (DMP)?
A Debt Management Plan is a simple and effective way to pay your non-priority creditors. Your counsellor will calculate the amount you can afford to pay after giving consideration to your priority debts - mortgage, utilities, council tax etcetera and day-to-day living expenses. Any money left is then deposited with the DMP administrator as a single monthly payment and then distributed to your non-priority creditors on your behalf.
What are the benefits of a DMP?
The DMP administrator will request reduced payments on your behalf with your creditors. In many cases the creditors will also agree to totally freeze or reduce the amount of interest being charged on your accounts, giving you the benefit of: • You have assistance in dealing with your creditors • Making payments you can afford and reducing your debt • Having regular reviews of your circumstances and your monthly deposit amount changing to reflect your situation
Once the DMP administrator receives your monthly deposit, you have peace of mind in knowing that all of your creditors on the DMP will be paid. Can anyone have a DMP?
A Debt Management Plan may not be the most appropriate solution to your particular circumstances, which is why we would arrange an appointment with a counsellor to discuss your individual circumstances and options. How long does a DMP last?
This depends on the amount of debt and level of repayment agreed with your counsellor. As a rough guide, if you divide your total debt by your monthly DMP payment amount, this gives you the total number of months it is expected to last. Will my payment remain the same throughout the life of my DMP?
Your income and expenditure will be reviewed periodically with a support counsellor. If your circumstances improve, there may be an opportunity to increase your monthly DMP payment and this will shorten the life of your DMP. Conversely, if your situation deteriorates, it may be possible to temporarily reduce your payments until they improve. How will I know my creditors are being paid?
We will send you a statement each month showing how the monthly payment has been shared among your creditors, so you'll always be aware of how much each has been paid. What effect will a DMP have on my credit rating?
If you are not making your contractual monthly payments to your creditors it is likely that your credit rating has already been affected. If you are making reduced payments through a Debt Management Plan many creditors will record this on your credit file. Will my creditors stop charging me interest if I set up a DMP?
Some may continue to charge interest but we receive excellent cooperation from many creditors and this can have a significant impact on your ability to clear your debts. However, you should be aware that they are not legally obliged to do so. Do my creditors have to accept the payments I offer them?
No, they don't have to accept the offer - but we will have prepared a budget with you that should demonstrate that you are paying your creditors what you can reasonably afford. They will also receive details of payments being made to creditors to show they are all being dealt with fairly.
How much will a DMP cost?
The DMP enrollment fee is $50 and there is a per creditor administrative fee each month that varies from as low as $4 per month up to $30 per month, depending on the account unpaid balance and State DMP regulation.
Disclaimer Legal Information Is Not Legal Advice This site provides information about the law designed to help users safely cope with their own legal needs. But legal information is not the same as legal advice -- the application of law to an individual's specific circumstances. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a lawyer if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation.
Consumer Credit Counseling Information, Debt Management Plan Information, Debt Settlement Plan information, Credit Counseling, Credit Score, Consumer Credit Counseling Service, CCCS, Bill Consolidation, Credit Repair, and Debt Consolidation is not advice, and we recommend you consult a licensed credit counseling agency, debt settlement attorney, and/or licensed debt management plan administrator in your state if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation.
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