Debt Management Plan
What is a Debt Management Plan (DMP)?
A DMP is an informal agreement between you and your creditors to pay back non-priority debts. It involves making a single, affordable monthly payment, which is then distributed among your creditors. DMPs are often suitable for those who have surplus income after covering their essential living costs.
Benefits of a Debt Management Plan
Step by Step Process of a DMP
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Contact us for a confidential discussion about your financial situation to see if a DMP is right for you.
We conduct a thorough assessment of your income, living expenses, and debts to determine an affordable monthly payment.
We develop a proposal outlining your new payment plan, which is then sent to your creditors for approval.
Our team negotiates with your creditors to freeze or reduce interest and charges where possible.
Once agreed upon, you start making monthly payments, which we distribute to your creditors.
We conduct regular reviews to ensure your DMP remains suitable for your circumstances.
Will a DMP affect my credit rating?
A DMP may affect your credit rating as it shows you are not paying debts as originally agreed.
How long does a DMP last?
The length of a DMP depends on your debt amount and how much you can afford to pay each month.
Can all debts be included in a DMP?
DMPs usually cover non-priority debts like credit cards and personal loans, not secured debts like mortgages.
Ready to take control of your debts with a Debt Management Plan?
Contact Parker Andrews today for personalised, empathetic guidance on managing your finances. Get in touch with us for a free consultation and start your journey towards financial stability.
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