Debt Management Plans
A Debt Management Plan (DMP) is a flexible and informal solution for individuals struggling to repay unsecured debts. It allows you to consolidate your payments into one affordable monthly amount, which is then distributed among your creditors. A DMP is not legally binding, but it provides relief by helping you manage your finances and reduce financial stress.
How a Debt Management Plan Works?
1) Assess Your Financial Situation:
We review your income, expenses, and debts to understand your financial position. This helps us determine how much you can afford to pay each month.
2) Create a Personalized Plan:
We review your income, expenses, and debts to understand your financial position. This helps us determine how much you can afford to pay each month.
3) Negotiate with Creditors:
Our team works with your creditors to:
• Reduce or freeze interest rates.
• Waive penalties and fees where possible.
• Accept lower monthly payments.
4) Make One Monthly Payment:
Instead of paying multiple creditors, you make one affordable monthly payment to us or the organization managing your DMP. We distribute the payments to your creditors on your behalf.
Benefits Of Debt Management Plan
Affordable Payments:
A DMP ensures that you pay an amount you can realistically afford.
Reduced Stress:
Simplifies your finances by consolidating payments into one monthly instalment.
Potential Interest Freeze:
Many creditors agree to stop charging interest or fees during a DMP.
No Legal Action:
Creditors are less likely to pursue legal action if they see you are committed to repaying your debt.
Flexible Solution:
A DMP can be adjusted if your financial situation changes.
Who Can Benefit from a DMP?
A DMP is suitable for individuals with:
• Unsecured debts, such as credit cards, personal loans, and overdrafts.
• A steady income to make regular payments.
• Difficulty managing multiple creditors.
It may not be suitable for priority debts like mortgage arrears, utility bills, or tax debts. For these, other solutions may be more appropriate. Please call our team to discuss your case summary.
What Debts Can Be Included in a DMP?
A DMP typically covers unsecured debts, including:
• Credit cards and store cards.
• Personal loans.
• Bank overdrafts.
• Payday loans.
We can also deal with HMRC self-assessment tax arrears ,HMRC Tax debt ,Sole trader business and Tax debt and previous utility bill arrears or CCJ order debt via affordable monthly repayment.
Limitations of a DMP
Not Legally Binding: Creditors can still contact you, although most don’t once a DMP is in place.
Impact on Credit Score: A DMP may negatively affect your credit score.
Priority Debts Excluded: Mortgage, rent, and Council Tax arrears may not be included in a DMP.
How to Get Started?
At Acme Credit, we make the process of setting up a DMP simple and stress- free:
1) Free Consultation: Contact us for a no-obligation review of your finances.
2) Tailored Plan: We’ll design a DMP based on your unique needs.
3) Creditor Negotiation: Our experts will liaise with your creditors to agree on affordable payments.
4) Ongoing Support: We provide regular updates and guidance throughout
your DMP.
Take the First Step Today
Don’t let debt control your life. With a Debt Management Plan, you can regain financial stability and move toward a debt-free future. Contact Acme Credit Debt advice team today to learn more.
• Call us now: 0208 568 9687
• Email us: debt@cohmen.tech
• Website: www.acmecredit.co.uk
• Visit Us: Acme House, 136 High Street, West Drayton, Middlesex UB7 7BD
Start your journey to financial freedom with a Debt Management Plan
tailored to your needs.