At Angel Advance we know that debt solutions and their associated terminology can be confusing, especially if you are in debt for the first time. Here we’re going to run through what a debt management plan (DMP) is, if you’re eligible and how to apply.
What is a debt management plan?
A debt management plan, often referred to as a DMP, is an informal and flexible way of helping you manage your debts and get back on track.
As your debt solutions provider, we will work out a budget with you that includes your essential household expenses including, rent, mortgage, utilities and grocery shopping. The money left over after your essential outgoings have been calculated is called your ‘disposable income’. This ‘disposable income’ is used to pay your creditors – the people you owe money to.
Your debt management provider will liaise with your creditors on your behalf and try to agree a reduced, affordable repayment for each of your debts.
Do I have to pay for a debt management plan?
You would pay your debt solutions provider a monthly fee for them to manage your plan. At Angel Advance our fee includes initial contact to all your creditors to try and agree a reduced repayment for each debt, ongoing contact with your creditors and a dedicated account manager throughout the term of your plan.
At Angel Advance our fee, as well as all your creditor payments, is paid straight out of your disposable income. Therefore, you only have to worry about managing one affordable monthly payment. And, if your income or outgoings change you can adjust your fee accordingly to ensure it remains affordable and allows you to live a comfortable day-to-day life.
Am I eligible for a debt management plan?
Eligibility for a debt management plan differs from case to case. We will take into account your income, outgoings and disposable income in order to determine your eligibility for a DMP.
The best way to find out if you are eligible is to use our free online debt advice tool. By inputting your details you can find out in 15 minutes whether you will be eligible for a debt management plan.
How do I apply for a debt management plan?
Before you can apply for a debt management plan you must get debt advice. Debt advice will inform you which debt solutions you are eligible for based on your individual financial circumstances.
Once you have received debt advice via our online tool or by speaking to one of our debt advisors you can apply for a debt management plan providing you are eligible. However, there is no obligation to apply once you have taken debt advice form us.
Can I cancel a debt management plan?
Yes, you can cancel your debt management plan at any time at no cost, all we ask is that you give us 28 days’ notice. If you change your mind during your cooling-off period (the first 14 days of you plan) you may be entitled to a refund of any fees already paid.
Taking out any debt solution can be incredibly daunting, especially if it’s your first-time facing problem debt. You can find out more information on debt management plans here, or you can contact our team who will be more than happy to answer any questions or concerns you may have.
Alternatively, you can get free online debt advice here to see if you are eligible for a debt management plan.