How do I know a DMP is right?

A Debt Management Plan is an informal (not legally binding on any party) means of repaying unsecured debts at a level that is affordable after ensuring that all priority debts and essential living costs have been covered – basically those bills you have to pay to keep food on the table, the lights and heating on, and the roof over your head!

The vast majority of people take out unsecured debts such as credit cards and personal loans when they are confident they can afford the monthly repayments originally agreed with the lender, and where you can afford these repayments, you should continue to make them, thereby preserving your credit record.

Sometimes however, life throws a curved ball, and unforeseen circumstances, such as redundancy, illness, divorce etc, materially change the household finances and it is at times like this that you need to take stock of your situation.

Many people find that, with a little belt tightening and better budgeting, they can continue to make their monthly repayments and that’s fine. However, many have found that their circumstances have changed so markedly that they can no longer cover their essential living costs and continue to meet the repayments required by their creditors.

If you find that you cannot face the stress of dealing with all of your creditors (a very common situation), or that the creditors require more from you than you can afford, or indeed are simply unsympathetic to your plight, you should seek help from reputable advisers such as National Money who will help you determine the right route to deal with your specific situation.

In reality you will not know whether Debt Management is the right route for you until you have spoken to us and we have understood all the issues you face.

One thing is for sure though – you will receive the right advice from National Money’s experts – call them on 08448 247 260

Or ask us any Debt Management questions using the form below: