Will a DMP help me to make a fresh start?

Many clients who have come to us have soldiered on for months or even years beforehand, trying their best to make some headway in reducing their debt levels, only to find that they may not even be keeping up with the interest charges! This is an untenable situation and often they have found that the creditors have not been receptive to cries for help which leaves them feeling isolated and very lonely.

A Debt Management Plan is the start of rebuilding your finances. It is an excellent way of addressing your debts at a level of repayment that you can afford after covering all of your essential living costs , and can really help you to budget within your finances.

Another advantage is that it sets out for the creditors a clear picture of your financial situation, and coming from a professional third party such as National Money who can confirm the review process, the creditors find it useful as it is likely that beforehand, they had only a very limited understanding of your situation.

Usually before people enter into Debt Management Plans, they will have missed a number of payments to their debts, or at least made payments at a lower level that set out in the original credit agreement, and this will have damaged their credit file which by now may record defaults and ‘poor’ payment records. Clearly with such damaged credit records, it will be very difficult to obtain further credit at reasonable interest rates, but over time, regular payments through a debt management plan will create a track record again for the debtor which will rebuild credibility over time.

It is important that during the life of the debt management plan, the debtor sticks to the budget agreed at the outset, and avoid taking out any further credit.

To suggest that this will happen quickly would be wrong, and it will be a long slog but worthwhile in the long run.

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