Struggling with debt? Getting professional debt advice and understanding which debt solutions are available for your situation is the first step to solving your money worries. A Debt Management Plan (DMP) is one of the most common debt solutions, offering you an informal, flexible way to regain control of your finances. But not every provider offers the same value. So, if it’s your first time getting debt advice, or you’re worried about the cost of a DMP, how do you know which companies offer affordable debt management plans?
What is a Debt Management Plan (DMP)?
A Debt Management Plan, or DMP for short, is an adaptable debt solution that involves a debt advisor:
- Working out a set budget for you: This budget will include all of your priority debts (e.g. mortgage payments, rent, household bills, etc.) and any money leftover (also known as your ‘disposable income’) will be used to pay off the debt you owe to your creditors.
- Contacting your creditors & managing payments on your behalf: The debt advisor would manage all contact to your creditors to try and agree on a reduced payment for each debt on your behalf, as well as handle the payments each time.
Which Providers Offer Affordable Debt Management Plans?
At Angel Advance, not only do we offer affordable Debt Management Plans (DMPs), but we also offer cost-effective Individual Voluntary Arrangements (IVAs) and free advice in relation to Debt Relief Orders (DROs), Bankruptcy, Partial Settlements and Debt Solutions for Scottish Residents.
How Much Do Angel Advance’s Debt Management Plans Cost?
Angel Advance’s Debt Management Plans (DMPs) involve a set-up fee for the first six months and an ongoing management fee from the seventh month onwards:
- Set-up fee: While our professional debt advisors are setting up your plan, we’ll charge a £50 fee from each of your first six monthly payments.
- Ongoing management fee: From the seventh month onwards, we reduce our monthly fee from £50 to £39.50 once our core negotiation work is done on your behalf.
Any fee we charge is capped at 49% of your payment. So, if you need to make a reduced payment, we will make sure over half of it is distributed to your creditors.
If you are unable to pay in any month, then no fee is charged.
Why Choose Angel Advance?
- We’ve helped over 48,000 people deal with debt: During our 13 years of experience as a company, we’ve helped 48,000 people with our free* debt advice and reliable debt management services.
- One monthly payment: If you take up a debt management plan with Angel Advance, you will just make one monthly payment to us, instead of paying all of your creditors individually.
- Transparent fees with no hidden costs: Angel Advance’s debt management plan fees are completely transparent, with £50 as the monthly fee for the first 6 months, which then reduces to £39.50 after those 6 months. There are no other fees for running your debt management plan.
- Free, confidential debt advice: If all you need is debt advice, we offer free, confidential, no-obligation debt advice over the phone, via email, WhatsApp or web chat. This won’t affect your credit score.
- Regulated by the Financial Conduct Authority (FCA): Angel Advance is authorised and regulated by the Financial Conduct Authority (FCA), meaning we deliver approved products and services, and prioritise customer protection above anything else.
Get Free, Confidential Debt Advice
If you’re struggling to find the best ways to pay off your debt, please contact Angel Advance to receive free*, confidential debt advice today.
You don’t have to talk to us on the phone if you don’t want to, you can use our online debt advice tool any time, day or night. Free and easy-to-use, our handy tool tells you which debt solutions are available to you on-screen, instantly – all without the need for a phone call.
As well as free advice, we offer support with Debt Management Plans (DMPs) and Individual Voluntary Arrangements (IVAs) which you can apply for online.
If all you need is debt advice, this won’t affect your credit score.
*Our advice is free, but if you sign up for a debt solution, a fee will apply for some solutions.
Which Companies Offer Affordable Debt Management Plans: FAQs
Here is an example of the cost of a typical Angel Advance debt management plan for someone who has 6 creditors to pay over a plan length of 60 months:
- Non-priority debt: £8,600
- Monthly payment: £185
- Monthly set-up fee (for the first 6 months): £50
- Monthly ongoing management fee (after 6 months): £39.50
- Total amount payable: £11,033
- Total fees payable over the period: £2,433
In this example, all interest and charges have been frozen.
Angel Advance’s monthly debt management plan fee for the first 6 months covers:
- Identity checks & documentation reviews
- Initial creditor contact: Angel Advance debt advisors will notify all of your creditors about your debt management plan.
- Negotiation of monthly repayments: We will negotiate with your creditors to see if we can reduce any of your repayments to them.
- Handling all correspondence you send to us
- Regular updates to let you know how everything is going
- Budget check-ins: Every so often, our debt advisors will check-in with you to see if changes to your budget are needed.
After the initial 6 months, our monthly fee covers:
- Ongoing management of creditor contact
- Monthly payments to all of your creditors
- Monthly statements for your account
- Annual review(s) of your budget and debt management plan suitability: If you have more ‘disposable income’ leftover after paying your priority debts, it may be practical to use some of this to pay off more of the debt you owe your creditors.
- Help & support from our customer service team when you need it: If you ever need support in understanding the information you have been given, or the plan you are on, please contact us.
- 24-hour access to your online account
While there are no government-approved debt management plan companies, there are several sources of free DMPs available to all consumers. For more information, please visit the MoneyHelper website.
MoneyHelper is an arms-length organisation that was set up by the government to provide free, trustworthy information and guidance.
Choosing the right Debt Management Plan (DMP) company is important to make sure you get an affordable and professional service. Here are some key things to look out for:
- Financial Conduct Authority (FCA) regulation: Any company providing debt management services must be FCA-regulated and authorised. This ensures affordable repayment plans and fair treatment.
- Transparency on the fees & terms of your plan: Before you apply for a DMP, the terms of your plan must be made clear to you. This includes the fees, total cost, duration, what portion of your payment goes to your creditors each month, the cancellation and refund policies, etc.
- Access to support: If you need help understanding any information you have been given by the DMP provider, this support should be easy to access.
- Check reputation & customer feedback: While this is not to be used as a sole reason to choose a DMP provider, a company’s Trustpilot profile can sometimes help you make a more informed decision based on other people’s experiences. For example, Angel Advance is rated Excellent on Trustpilot, with a 4.9 star rating.
