If you are struggling with your debts, a structured debt management programme may help you cope with your finances and allow you to pay off your debts with affordable payments. An effective way to do this is with a debt management plan.
Debt management plan
If you are having difficulty keeping up with your contractual payments to your creditors, a debt management plan (DMP), may help. A DMP is a regular payment programme usually arranged by a third party on your behalf. The third party acts as an intermediary between you and your creditors.
Many debt management companies charge fees for arranging and administering debt management plans, but debt charities like ourselves provide debt management plans completely free of charge.
Debt management plans - who are they for?
A debt management plan is not appropriate for everyone. For a DMP to be suitable, you need to have some money left over after paying your essential bills and living expenses so you can make regular monthly contributions towards your debts.
How does a DMP work?
Your finances are assessed and your budget is calculated. The third party arranging your DMP then writes to your creditors to arrange an affordable monthly payment towards your debt.
You make one payment a month to the third party and they divide it between the individual creditors. If you are using a fee-charging debt management company, the fee will usually be deducted from your monthly budget surplus.
CCCS debt management
We arrange and manage free debt management plans, so every penny you pay goes towards reducing your debts.
If you think a debt management plan could be suitable for your situation, get free online debt counselling via CCCS Debt Remedy. We will assess your finances and tell you which is the most appropriate debt solution for your circumstances.