Who can a debt management plan help?
However much money you owe, if you are unable to meet your agreed unsecured credit commitments each month, then a DMP may be able to help you. A DMP cannot include secured debts (like a mortgage or secured loan) or tax arrears and court fines, but they can help relieve your unsecured balances so that you have enough money each month to maintain these debts yourself. This is because secured debts and priority payments are adequately budgeted for within the plan. A Debt Management Plan involves a non-legal agreement. This means that there is no contract putting your property at risk, there are no expensive lawyer’s fees and also there is greater flexibility with the level of payments – as they can be altered should your circumstances change. Another benefit of a DMP is that you are free to stop using it if your circumstances change and you no longer need one, so they can be used to get through difficult periods – like if you have been made redundant or have reduced income, or if you have
