What help do I get with a DMP?

A Debt Management Plan is an informal arrangement between the debtor (you!) and your creditors (those who are owed money by you), which is essentially based upon what you can reasonably afford to pay each month from your income after you have covered essential living costs.

Budgeting

In order to determine how much you can reasonably afford to pay towards your Non Priority debts, which will typically be things like unsecured personal loans, credit cards, store cards, mail order catalogues, and/or payday loans and ‘doorstep’ loans, we will need to review your personal and financial situation.

Through this review you will end up with a monthly budget which will give you a clear picture of what you can and cannot afford if you are to achieve a balance of the household’s books every month. It is very likely that this budget will show you that money is not being spent according to the essential priorities which would benefit your family/household, and will highlight for you those areas where you will need to make changes in your spending habits in order to achieve some savings.

The principle aim of a budget is to ensure that all essential costs are covered before any thought of other spending, part of which is also to ensure that funds are allocated to the repayment of outstanding debts.

With the clarity of the financial position that budgeting brings, comes also reduction in stress levels; at National Money we have found on so many occasions now that clients feel much better once they understand their finances better through the budgeting process.

Financial Planning

Having become accustomed to operating your finances within a budget, you will find that you will move naturally to setting out your own wider priorities, such as pensions, savings and finding bargains! This is a useful extra step, particularly in today’s uncertain economic climate where there are plenty of risks in the job market.

Thinking more widely about your budget will help you to plan for the unforeseen eventualities that will always come your way when you least expect them. Try to build yourself a financial cushion to cover these potential situations so that it is easier to ride out the storms.

Credibility

The Debt Management Plan process puts together a lot of information into a standard format that is understood by creditors, and the provision of this information demonstrates that you are being open and honest about your finances; in effect you are telling your creditors a great deal more about your financial situation than they probably know about you already. This will add to their ability to understand your difficulties whilst at the same time provide with a solution to their situation.

A proposal for a Debt Management Plan put forward by a reputable provider such as National Money, supported by the detailed information supplied as part of the proposal, will be seen by your creditors as firstly a recognition of the money problems you have, a determination to address these, and a credible way of dealing with your debts.

Peace of mind

A Debt Management Plan with National Money ensures that all of the correspondence and liaison with your creditors is taken out of your hands and handled by one of our team of experts.

It is very likely that, prior to speaking to National Money, you will have received a lot of letters from your creditors, some of which might have been quite strongly worded, creating plenty of worry. You may also have been called on several occasions by these creditors to discuss your situation and press you for payments that you could not afford; this can be very worrying and indeed time consuming when there are a number of these creditors pressing for such payments, and you can quickly suffer from the stresses that go with this.

With a Debt Management Plan with National Money, these calls and letters will quickly tail off. This will not happen immediately as clearly our proposals need to filter through all the relevant departments of the creditor and of course they will wish to see evidence of your regular payments to them through the Plan. Where you do receive contact from them, simply refer them to us to handle and then get on with life.

Ongoing support

In essence your case worker at National Money is with you throughout the life of the Plan – and after that if you wish – and has been trained to deal with all of your concerns, correspondence and liaison with your creditors, whatever is required. We are not an organisation that passes you from one place to another depending upon what you need; you will speak to just one person throughout.

Your allocate team member is there as a ‘sounding board’ whenever you need to speak to someone.

Call us on 08448 247 260 or ask us any Debt Management questions using the form below: