8) DEBT MANAGEMENT PLAN (DMP)
What is a Debt Management Plan 'DMP'?
A DMP is an affordable repayment programme set up by an independent company who will negotiate with your creditors to agree an affordable monthly payment with a sum paid to each creditor each month. You will be asked to provide an accurate Personal Finance Statement (SOA) to show / prove your disposable and available funds to be paid to the debt management company.
You pay the amount to the Debt Management Company who then pays each Creditor
To be able to use a DMP you need to be able to satisfy the 3 below conditions:
a) have debts of £5,000 or more.
b) have 3 or more individual creditors.
c) have £100 or more available income per month.
A DMP is a good option if you can afford to make regular payments to creditors. Be aware that if you do miss a payments on a credit debt, this will be recorded on your credit reference file by your creditor and some may also ask for a note to be put on your credit reference file to say you are on a DMP.
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IN DEBT
1) Budget Plan
3) Prioritizing
7) Bailiffs
8) DMP
9) IVA
10) Loans
11) Bankruptcy
12) Do's and Dont's
1) Budget Plan
3) Prioritizing
7) Bailiffs
8) DMP
9) IVA
10) Loans
11) Bankruptcy
12) Do's and Dont's
FIGHTING DEBT
a user's guide