Debt Management Plan - Debt Consolidation Mortgage

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*DMP (Debt Management Plan)

DMPs are a managed informal arrangement with creditors, accepting any terms of a DMP proposal put forward on behalf of the debtor (one of our partners) is accepted always at the discretion of the creditors. A good debt advice service recognises this and will only suggest a debtor pays what they can realistically afford after their priority costs e.g mortgage, utilities, food etc. DMP’s is a method for paying personal unsecured debt and it involves assessing your debts, income, budget and re-negotiating interest rates and payments with the creditors. This in most cases (but not guaranteed) works out to be a more realistic monthly payment that you can afford.

 

A debt management plan may appear to be similar to that of an IVA ( Individual Voluntary Arrangement), which is governed by the Insolvency Act of 1986 and designed to help you avoid bankruptcy. However an IVA is legally binding unlike a debt management plan which is not.

 

Advantages of a Debt Management Plan

1. A debt management plan is less formal than an IVA, this may afford you more freedoms to pay back your debts as and when you can, over a longer period of time.
2. You no longer have to deal with your creditors.
3. You make payments that you can afford. Your payments are re-evaluated frequently so that any changes to your situation can be taken into account.
4. You only make one payment a month. 

Disadvantages of a Debt Management Plan

1. Debt management plans are not legally binding so creditors do not have to agree to repayment schedules. However, if the arrangement works well the creditors will be happy to co-operate.
2. You must be aware that because a debt management plan is not legally binding your creditors can, in theory, still proceed with court action.
3. You may never get rid of your debt totally
4. You credit record will be affected.
5. Interest and charges are not always reduced or stopped.

Online debt consolidation - Is it right for me?

 

There are hundreds of online debt consolidation companies to choose from and looking for online debt consolidation can sometimes be over whelming. Online debt consolidation is normally for individuals who are looking for help and advice on  their debt. You may be struggling to pay your bills and filling your details in online for help and advice for online debt consolidation can be the first step to consolidating you debt.  Online debt consolidation is the first stage in getting the advice and help you may need to manage your debt effectively.

 

What is free debt consolidation?

 

Free debt consolidation are companies that are fee free organisations. They will look at your current debt and offer you free debt consolidation advice on your current situation. Once they have reviewed your details they will offer a free debt consolidation arrangement which will be based on your own individual circumstances. The free debt consolidation advice they offer you will be up to you to make a decision on and weather or not you would like to proceed.

 

Free debt consolidation means you are never under any obligation to take out any potential arrangement and you should always contact at least several different companies. If you are in doubt about any free debt consolidation advice you have been given you should always contact a financial adviser for advice before proceeding with any arrangement.

 

Debt consolidation loans - Reduce you monthly payments!

 

Debt consolidation loans can sometimes help individuals by consolidating there existing debt  and reducing their payments into one single payment per month. Debt consolidation loans are available from many different companies through out the UK and you should always look at every option before agreeing to debt consolidation loans. If you have any doubts about debt consolidation loans and weather or not debt consolidation loans are the right solution for you should always consult a qualified financial adviser. 

 

Debt Consolidation Mortgage

 

If you have debt and are looking to remortgage a debt consolidation mortgage maybe the answer for you. Debt consolidation mortgage will enable you to consolidate you debt by a remortgageing your property. This sometimes can enable you to reduce you monthly outgoings and having only one easier payment to make per month. Debt consolidation mortgage can also help with manage your finances and sometimes reduce the interest you may pay on any unsecured debt. Entering into a debt consolidation mortgage should not be taken lightly and you should speak to a qualified financial adviser before making any decision on a debt consolidation mortgage.