Debt Management Plan (DMP)
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:
Based on your budget, we develop a payment plan that fits your needs and ensures you can cover essential living expenses.
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 a Debt Management Plan
Affordable Payments: A DMP ensures that you pay an amount you can realistically afford.
Potential Interest Freeze: Many creditors agree to stop charging interest or fees during a DMP.
Reduced Stress: Simplifies your finances by consolidating payments into one monthly instalment.
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.
Contact Us
Call Us: 0208 568 9687
Email Us: debt@acmecredit.co.uk
Visit Us: Acme House, 136 High Street, West Drayton, Middlesex UB7 7BD