Debt management plan information
- Only pay what you can afford
- All the support & help you need
- Interest & charges may be frozen
No fee is charged for initial advice. Fees apply if you enter a debt solution with us, and your credit rating will be affected. The debt solutions will be tailored to your circumstances and explained in full. Some solutions result in debt write-off.
To discover more about how to manage your debt and to receive free debt advice visit www.moneyhelper.org.uk
Is a debt management plan suitable for me?
A Debt Management Plan (DMP) is an informal debt solution where a third-party company acts on your behalf and negotiates with your creditors to reduce your monthly payments. At The Debt Advisor, we advise on a range of debt solutions, including DMPs. We complete a full review of your circumstances and then provide tailored debt advice. Click here to apply or read more about debt management plans here.
A DMP could be suitable if you live in England, Wales or Northern Ireland and you are struggling to meet your minimum debt payments, but have some surplus money available each month once you have paid all your household bills. Household bills include “priority payments” including rent, mortgage and utilities, plus anything toward any arrears. Our advisors will assess your situation and determine if a debt management plan is suitable for you.
A debt management plan can help you with most types of debt
CREDIT CARDS, LOANS & PAYDAY LOANS, STORE CARDS & CATALOGUES, OVERDRAFTS, LINES OF CREDIT and BUSINESS DEBTS.
- CREDIT CARDS
- PAYDAY LOANS
- STORE CARDS
- LOANS
- OVERDRAFTS
- CATALOGUES
How Does It Work?
We cover England, Wales, and Northern Ireland, and we want to help you on your journey toward being debt-free.
If you need debt help, we understand more than most that dealing with debt can be stressful, but we also know how it can be resolved.
UK residents have a right to debt help and there are several tried and tested solutions that can help lower your debt payments, freeze interest and charges, and stop pressure from creditors.
All debt advice we give is confidential, and without obligation.
We could help if you are...
- Struggling with unmanageable debts.
- Unable to pay your creditors.
- Worried about creditors taking action against you.
- Stuck in a cycle of borrowing to repay debts.
- Incurring interest and charges due to missed debt repayments.
- Paying high interest and charges and your debt is not reducing.
- Considering what debt solutions are available.
Our 3 Step Process
1. Get Started
Answer a few questions about your current circumstances
2. Speak To An Expert
Chat to one of our debt experts and run through the options.
3. Relax
Select the best fit for your circumstances and leave the rest to us.
We know that dealing with debt can be difficult, so we’ve simplified it into three easy steps. There’s no pressure to make a quick decision.
The Debt Advisor Ltd is authorised and regulated by The Financial Conduct Authority. This means that we are able to offer debt advice and administer both formal and informal debt solutions of behalf of individuals and business owners. We are a commercial organisation, and if you choose a solution we provide, fees will apply for our services. Fees vary dependent upon the solution and will be clearly explained to you.
We provide no-obligation advice to anyone who requires debt advice. All options will be explored, and we will help you find the solution best suited to your individual circumstances. Entering into a debt solution and not maintaining your monthly contractual payments may cause your accounts to fall into arrears, or the balance outstanding could increase. Payments made to creditors whilst you are on a Debt Management Plan with The Debt Advisor are distributed to creditors within 5 working days. Payments made to an IVA will be distributed to creditors in line with the terms of the proposal.
Please take a look at the information we provide for each solution, and the applicable fees. There are various options to help you deal with your debt problems. These include: Individual Voluntary Arrangements (IVAs), Bankruptcy, Debt Relief Orders, Debt Management Plans, and Debt Consolidation (subject to suitability and criteria). If you live in Scotland, the solutions are different, please visit Scottish Debt Solutions.
Entering into an Individual Voluntary Arrangement (IVA), Debt Relief Order (DRO) or Bankruptcy will result in your personal information being shown on the Insolvency Register, which is a public register.
You could be on your path to debt freedom
Your financial future could look like this.....
Benefits of a DMP
- A Debt Management Plan is designed to allow you to pay what you can realistically afford to your creditors each month. Generally, creditors will agree to accept reduced payments and freeze or reduce interest charges.
- The major benefit that we find our clients appreciate is having us liaise and deal with all creditors and their correspondence. This includes dealing with phone calls, letters and takes away the stress of creditor interaction.
- Creditors may freeze interest and charges
- If you’re struggling to meet your normal payments to creditors, a DMP allows you to pay an affordable monthly contribution
- A DMP is flexible. You can terminate your plan if your circumstances improve or you find an alternative debt solution that meets your needs.
- A DMP is an informal solution and should ideally provide for you to clear your debt in less than 10 years. If the plan looks like it could take more than 10 years, a DMP may not be appropriate unless you feel your circumstances are likely to change which will enable you to clear your debt in a 10 year period.
- Creditors may stop further action. Our team are attentive and will work hard to negotiate with your creditors on your behalf.
Risks of a DMP
- A DMP is an informal debt solution and creditors are not obliged to freeze interest and charges. Some creditors may agree to reduce interest charges rather than freeze them. Continued charges will be added whilst your offers are considered and this could result in it taking longer and costing you more to repay your debts.
- You will need to repay your debts in full on a Debt Management Plan.
- As a DMP is an informal arrangement, there are certain debts such as arrears of council tax which cannot be included due to the risk of action against your assets. There are other solutions such as an IVA which can include arrears of priority bills.
- A DMP could have a negative impact on your credit file. Creditors can issue default notices which will remain on your credit file for 6 years. Your ability to obtain credit will be affected.
- You may from time to time receive an unwanted call from a creditor especially if they are using a debt recovery company. Creditors will also still send you statements, default notices and notice of sums in arrears as they are required to by law in line with the Consumer Credit Act 1974.
- We cannot guarantee that creditors will not take legal action or that they will stop collection activity. Such action could result in a judgment and could potentially lead to a charging order if you have a property.
- If you cancel your DMP or fail to maintain payments to the plan, creditors could end payment arrangements previously agreed, and charges could be reapplied to your debts.
Frequently asked questions
What options are available to me?
Each situation is different. To determine what options are available, an income and expenditure form would need to be completed to understand what your affordability is. This would then determine what options are available to you. In England, Wales & Northern Ireland, there are options including Debt management plans (DMP), Consolidation, Individual voluntary arrangements (IVA), Bankruptcy, and Debt relief orders (DRO). In Scotland, options include self-help, informal arrangements, consolidation loan, Protected Trust Deed, Sequestration & Minimal Asset Process.
Can a debt advisor help me today?
Contacting our team is the first step. You can call us during working hours on 0161 532 2926 (Advisory team) or fill in a simple form above. You will receive all the help and guidance you need to find a debt solution.
The Debt Advisor Ltd is authorised and regulated by The Financial Conduct Authority. This means we are able to offer debt advice and administer both formal and informal debt solutions on behalf of individuals and business owners.
We provide no-obligation advice to anyone who requires debt advice. All options will be explored, and we will help you find the solution best suited to your individual circumstances.
How can I contact The Debt Advisor?
- Complete the form or call our advisors on: 0161 532 2926 (direct line during office hours).
- Email: advisoryteam@thedebtadvisor.co.uk
- Chat with us directly on Whatsapp Messenger
What happens after I fill in the form?
You will receive a confirmation email and SMS with some further information. If it’s within our office hours:-
STEP 1
Keep your phone at hand. Our advisors will be in touch to go through the details with you. We’ll work with you to get a complete picture of your circumstances. It’s 100% confidential, and there is no no-obligation to continue.
STEP 2
We provide no-obligation advice to anyone who requires debt advice. All options will be explored, and we will help you find the solution best suited to your individual circumstances. Our experienced team offers a personal approach to finding solutions to your debt challenges, and they will help select the right plan for you.
STEP 3
Once a solution is in place, you’re on the road to getting your debts under control.
Can I get help for free?
There is no charge for the initial call and advice, and you are under no obligation to proceed. We provide free no-obligation advice to anyone who is considering a debt solution. All options will be explored. We are a commercial organisation and if you choose a solution we provide, fees will apply.
Free debt advice and information is also available to customers from the Government’s Money Helper website: www.moneyhelper.org.uk/en/money-troubles/dealing-with-debt