Debt Management Programme (DMP)
is an informal arrangement between you and your unsecured creditors administered by a Licensed Debt Management Company. A debt adviser works out a reasonable payment offer, where you have sufficient funds to live on and the rest is evenly distributed between your creditors. A payment offer is normally much lower then your contractual payments.
If you are struggling to pay your debts a DMP with Clear Financial Solutions can help to:
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Get free professional debt advice
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Make one affordable monthly payment to creditors
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Have enough money for all necessary expenditure in your household
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Find dedicated team that deals with your creditors directly on your behalf
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Negotiate with creditors an agreement to reduce or stop any further interest and charges
A DMP may be solution if you have:
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Multiple debts that are difficult to manage
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Mortgage, rent, council tax or utility bill arrears
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CCJ’s against you or been threaten by court action or bailiff visit
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Credit and store cards, personal loans, overdrafts, mail order catalogues debts
Advantages
- Immediate release of pressure from creditors
- Controls Monthly expenditure
- Improves affordability when applying for loans
Disadvantages
- Informal agreement
- Some creditor's may delay stopping interest
