Topic: finance
Recent research has estimated that nearly a million people are having problems repaying they’re debts. The recent financial crisis and rising cost of living has caught many people out and many individuals are now finding themselves with debt problems.
A debt management plan is designed for people who are having a problem paying off their unsecured debts each month. They provide a solution so that people are able to reduce the amount that they repay every month.
Debt management plan companies work by taking a look at your financial situation and figuring out a plan which will let you pay back a reasonable amount towards your debt every month, while making sure you have enough money for the cost of living.
DMP’s are a good option for people who have had a recent change in their financial circumstances, which could include things such as being made redundant or getting a pay decrease.
They are also seen as a low risk option for many people because they are not a formal, legally binding agreement. This allows the person with the DMP to change their payments or stop the DMP at any time.
You will be allocated a dedicated debt advisor from your debt management plan company. This individual will be responsible for drawing up a realistic plan for you and providing you with any information or advice that you may need regarding debt.
Remember that because a debt management plan is not a formal, legal document that you creditors are not under any obligation to abide by the terms of it. This means that interest and charges write-offs cannot be guaranteed.