How much does a DMP cost?
There are three types of organisation which can help deal with debts through a debt management plan:
- The charity sector, such as the Citizens’ Advice Bureau, which receives funding from the local council, and central government, though this funding is being curtailed now as part of the cost cutting measures being enforced by Government – see our blog article on this for further information: Is it right to charge a fee for help in dealing with debts?.
As a result of this funding to date, the CAB has been able to offer assistance without charging a fee to the individual. - Companies which are funded by the lenders, who as a condition of this funding do not charge fees to the client.
- Debt management providers who charge fees to their client in respect of the advice and work they carry out on the client’s behalf, rather like professionals in other sectors such as solicitors, accountants etc.
It is important to clarify what fees are charged by debt management providers, and what service is being provided for that fee, as charges do vary from one provider to another as does the service level.
National Money does charge fees for looking after your affairs as we carry out a lot of work on your behalf.
Our debt management fees are in 2 parts:
- At the outset of the arrangements, where we are doing a lot of research and liaison work with creditors, we charge a fee equivalent to your first 2 months’ contributions into the Debt Management Plan. However if you are moving to us from another debt management provider and can provide us with a detailed statement of your debts, reference numbers and payment details, this will save us work and time costs, and we will reduce this fee to just one month contributions.
- From Month 3 onwards, we levy a monthly administration fee equivalent to 17.5% of your monthly contribution, subject to a minimum of £25 per month. This covers all of the work we carry out on your behalf during that month, however much that is.
We do not require any ‘up front’ fees or additional fees thereafter apart from those listed above.
Call us on 08448 247 260 or ask us any Debt Management questions using the form below:
