What is a Debt Management Plan (DMP)?
A debt management plan (DMP) is an agreement between you and a debt relief provider. Simply put, you repay your unsecured debts in full over time in a single monthly payment that is distributed to your creditors by your DMP Provider. In return, after 3 consecutive DMP payments, most creditors will agree to significantly reduce your interest charges, eliminate late and over-the-limit fees, and reduce the amount of your monthly payments.
We help you work out what you can afford to pay each month.
You pay this amount to the debt management company. The debt management company pays your money to all your creditors for you.
Who can use the service?
Anyone who answers yes to these three questions.
1. Do you have debts of $5,000 or more?
2. Do you have three or more individual creditors?
3. Do you have $200 or more available income per month?
How does it work?
First you need to put together a personal budget sheet to see whether you have enough available income.
Add up all your household income. Then add up all your essential expenses, like rent, mortgage, household bills, food, travel, child care. Take the second figure from the first. What you have left over is your available income to pay your credit debts.
Information: If your available income is $200 or more, a DMP might be a good option for you.
Is it the best option for me?
A DMP is a good option for people who can afford to make regular payments to their creditors and want an easy, hassle-free way to pay. We can give you more information about DMPs, as well as advising you on bankruptcy, debt settlement and self-help options for dealing with your debts.
Information: If you would like more information on anything about your debts, phone us for advice.
Remember: Our advice is free, independent and completely confidential.
What do I do next?
If you are interested in a DMP call us now on our freephone number 1-888-502-3907.
Your credit report
Warning: If you miss payments on a credit debt, this will be recorded on your credit report by your creditor whether or not you then set up a DMP. This will usually make it harder for you to get credit. Some creditors may also ask for a note to be put on your credit report to say you are on a DMP.
Advice: If you require further information on how to obtain a free copy of your credit report. Phone us for advice. Remember: You can always Phone us for advice about any difficulty you are having in dealing with your debts.
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