Our Services

Debt Management Plan

A Debt Management Plan (DMP) is an agreement between you and your creditors to pay all your unsecured debts.

Debt management plans are usually used when either:

  • You can only afford to pay creditors a small amount each month
  • You have debt problems but will be able to make repayments in a few months
  • You do not qualify for debt relief due to assets you may have

This includes all non-priority debts ie Credit Cards, Loans, Pay day loans etc

A DMP will be based on you disposable income, the payment will continue until your debts have been paid off in full

Pros Vs Cons

Advantages

  • Flexible plan where you can increase or decrease payments to your creditors dependent upon your circumstances
  • Creditors may reduce your repayments and stop interest and charges, but are not obliged to do so
  • You make one affordable monthly payment to the DMP Company
  • There are certain non-fee charging organisations and charities that provide this service free of charge, you can contact MAS for more information

Disadvantages

  • Most commercial providers will charge for this service, (Management fees generally 50% of the first 6 months payments and then a monthly fee on average of £38 per month)
  • To be effective, all creditors need to agree to the plan
  • Creditors can withdraw at any time, and the plan offers no legal protection
  • There is no guarantee that interest and charges will be frozen however it does happen in the majority of cases

Get in touch with us today.

SMS Text Message

0141 380 0516

Whatsapp Message

+44 141 380 0516

Our Email

info@mlssolvency.co.uk

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