Debt Management Plan.
What is it?
A Debt Management Plan (DMP) is an informal agreement that we make with your creditors on your behalf. Under the agreement, the creditors will accept reduced payments for a fixed period of time on the understanding that the reduction is justified and will be regularly reviewed. At each review, the reduction is either amended, agreed again or both. All of this work is done on your behalf by us and because we are so good at what we do, you are completely protected by our unique money back guarantee.How do Debt Managment Plans (DMPs) work?
First of all, your monthly household income is evidenced by payslips, contracts, benefit awards or company accounts. We then know precisely how much money comes into a household each month.We then calculate your expenditure. Certain items of your expenditure are easily evidenced. Your monthly mortgage or rent payment can be proved with a statement or contract. The same is true for things like your car insurance and mobile phone bills. For other items, creditors use pre-agreed guidelines for the things that you have to spend money on each month like transport and food. Using a combination of evidenced items and guideline amounts, your monthly expenditure can be easily and fairly calculated.
We should also point out here that guidelines are precisely that and are
not hard and fast rules. There are many people who have unique
circumstances which can be taken into consideration. It is simply a case
of understanding and communicating them correctly to your creditors.
Once we have these two figures, we deduct your expenditure from your income and what remains is referred to as disposable income and is what your creditors will expect you to pay them each month. If it sounds too good to be true, ask yourself this; If you were owed money, would you rather get some of it back or none of it?
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