Debt Management Plan
A debt management plan could prove to be the best method for you to make repayments and get back on your feet. One affordable repayment, high chance of interest and charges frozen, informal flexible arrangement and not a form of insolvency.
✓ Write off unaffordable debt
✓ One monthly repayment
✓ Only pay what you can afford
✓ Become debt free
Bennett Jones is associated with The Debt Advisor Limited who are authorised and regulated by the Financial Conduct Authority to provide debt advice. An IVA may not be suitable in all circumstances. Fees may apply. Entering into an IVA will affect your credit rating. You could write off up to 80% of your debts upon successful completion of an IVA.(10% of our customers wrote off 80% in the last 12 months, with a typical figure of 25%-75%).
See if you are eligible
If your debts are adding up, it may be time to consider arranging a debt management plan.
These agreements serve as safety ropes, helping pull you out of danger before the debt becomes unmanageable. Negotiating these types of plans with creditors can be daunting and complicated. If an informal debt management plan is something you may like to consider, our trusted partner, The Debt Advisor Ltd, can provide you with information. Get in touch today and take advantage of our insolvency knowledge, for free, by calling 0161 960 0054 or submitting your details via our online enquiry form. Bennett Jones has helped thousands of people solve their debt problems. We understand how stressful and difficult life is when you can’t pay your debts and your bills.
You can trust Bennett Jones to help you if you are struggling to pay your debts. We specialise in Individual Voluntary Arrangements – a legal solution that allows for unaffordable debts to be written off. With an IVA from our team, you will make affordable repayments to your creditors over a fixed period, with the remaining debt written off at the end.
We are proud of our 5* Trustpilot reviews
June 2024, Lynne
Patient and understanding debt management advice. From the beginning to the end of my five year journey to take control of my debt everyone at Bennett Jones have been nothing but kind and supportive. Always supporting me without making me feel uncomfortable about my circumstances and explaining everything very patiently, showing understanding of how difficult this can be for someone to undertake and guiding me gently through concerns and daft questions. Thank you for your assistance in taking back control and making a fresh start after a particularly challenging time in my life.
May 2024, Adam
I would like to thank Bennett Jones for helping me with my IVA proposal. I'm a glass half full person but the realities of life and unforseen circumstances with finances had taken its toll. Bennett Jones have helped me to have a fresh start and take control back of my finances. It's a huge load lifted off my shoulders.......
April 2024, Beverley
I would like to thank Bennett Jones for all their help over the past 5 years.. I was in a pretty dark place financially. And through the debt advice helpline I found Bennett Jones.. From start to finish they have been professional sympathetic and always helpful. I've recommended friends who are also happy with their service. If I could give more than 5 stars I would.
What’s the difference between an IVA and a DMP?
IVA stands for Individual Voluntary Arrangement, and DMP stands for Debt Management Plan. DMPs are not legally binding. This means that your creditors can still take action against you should you default on your revised payment plan.
Is a DMP right for you?
A DMP may be a good option if the following apply to you:
- You can afford the monthly repayments on your priority debts (such as mortgage, rent and council tax) and your living costs, but are struggling to keep up with your credit cards and loans.
- You’d like someone to deal with your creditors for you
- Making one set monthly payment will help you to budget.
Joint debts and DMPs
If you have a debt in joint names with someone else, this can be included in your DMP. However, your creditors may still chase the other person for all of the debt. This is because whenever you take out a credit agreement, such as a loan or bank account, with another person, you’re both liable for the full amount of the debt. If both you and your partner are struggling with debts, you might want to consider setting up a joint DMP where you’d both be equally responsible for the repayment plan. It doesn’t matter if you have different levels of income or debts. You can also include debts that are only in one name in a joint DMP.
Will a DMP show up on your credit file?
Your DMP may show up on your credit reference file. Some creditors may ask for a note to be put on your file to say that you have a DMP. This would reduce your chances of getting credit if you applied for it while on your DMP, as it would show you’ve had trouble keeping up with repayments. However, if you kept up with your DMP repayments, the DMP would look better on your credit reference file than unpaid debts or debts that you were only making infrequent payments towards. The note may also stay on your file for a time after the DMP has ended, so you may struggle to get credit for some time afterwards.
If you miss payments this is also recorded on your credit reference file. Even if you’re in a DMP, your creditors may still record that you’ve missed payments, as you’ll be paying less than you agreed to when you took out the original credit agreement. This will mean you could find it harder to get credit while you’re making reduced payments and for some time afterwards.