Debt Management Plans

A Debt Management Plan (DMP) is a debt solution for anyone with multiple unsecured debts they can't afford to repay. Informal agreements are made between your client and their creditors to reduce monthly repayments. This allows your client to live within an affordable budget.

Debt Management Commissions

50% of the client's first monthly installment. Minimum payment to referrer, £125.

Debt Management Criteria

To quailify for a DMP, your client must have debts of £3,000 to as least two different creditors. They must be able to demonstrate they are struggling to meet current repayments, but able to afford at least £100 per month. This is done by our debt advisor taking a financial statement from your client detailing income and expenditure which is subject to creditor agreed guidelines.

Why Refer DMP cases to us?

Converting loan declines
A key aspect in successfully advising on debt management is explaining why this solution is the most appropriate to your client if they still think a loan is a potential solution. A large proportion of our debt management clients were referred to us from an original loan enquiry.

More chance of converting to an IVA
Our minimum levels of debt and minimum monthly contributions are much lower than most other IVA providers. Therefore, where appropriate, we will be able to place more of your cients within an IVA than other partners you may have worked with, which means more revenue for you.

Benefits For Your Client

An affordable repayment plan.
Your client only repays what is affordable after taking into account personal circumstances.
One monthly or weekly payment.
Multiple credit repayments are combined into one lower and affordable payment. Minimum payments are £100/month or £25/week.
Consolidate debts without further borrowing.
Your client needs not go further into debt nor put their property at risk of repossession by a secured loan or remortage.
No more angry phone calls or threatening letters.
Your client's personal debt advisor will deal will all creditor communication.
Interest and charges frozen.
Once the DMP is in place, creditors are requested not to make any changes to the agreement or add further interest or charges.
Flexibility.
Payments can be changed as your client's ability to pay changes.
Does not involve client's property or other assets.
Unlike an IVA, a debtor's assets are not a factor, only their inability to meet contractual payments.

Points to consider before entering into a DMP

Your client will have difficulty obtaining further credit before their DMP is completed.
Default notices are recorded on their credit file.
A DMP is NOT legally binding so creditors can still take court action.
Creditors do not have to agree to freeze interest or penalty charges incurred.
It could take several years to pay off the debt owed - this is not a quick fix solution.