An arrangement to reduce your monthly payments to your creditors is known as a debt management plan. It can be negotiated by you or a third party. Unlike other debt-relief options like an Individual Voluntary Arrangement (IVA), it is not legally binding. Your proposed monthly payments under a DMP are determined by how much you can actually afford.
Debt Management Plan works
A debt management plan may take several forms depending on the circumstances, but generally speaking, it will proceed in the following ways:
Select your DMP provider: Although you can choose to hire a third party if you require further assistance, you can arrange a DMP with your creditors on your own. If you choose to work with a DMP provider, a consultant will represent your interests and take the strain out of dealing with creditors directly.
Establish a budget: If you decide to work with a DMP provider, you will need to submit paystubs, bills, and other supporting documentation so that the amount you can afford to pay after paying for necessities can be determined.
Provide a suggestion to creditors: Your creditors will then see your budget and decide whether to accept your new monthly payments or not. In exchange for their acceptance, they can also agree to put a freeze on ongoing interest and fees.
Make your new monthly payments: Making your new monthly payment is the last stage of a debt management plan. You can start paying lower payments right now, regardless of whether your creditors accept your DMP or not.
If you are struggling with debt problems and need to set up a debt management plan, then contact Acme Credit Consultants Ltd. and get a customized debt management plan that fits your requirements and situation. Call us now at 07779648018.
