Debt Management
All you need to know about Debt Management Plans
You’ve already taken the first step to solving your financial difficulties by making contact with us here at Thomas Charles. You’ll be pleased to know that many people find that making the first contact was the hardest step.
Our aim is to help you make an informed decision about where you go from here and after talking it over with one of our advisors, if you’re considering a Debt Management Plan (DMP), what sort of things do you need to know? The answers below should provide you with all the information you need to make that informed decision. If, however, you find you’ve got more questions, just speak to your advisor.
People can be on debt management for a variety of reasons; it does not mean they’re reckless or have been careless with their money. A change in circumstances, such as redundancy; a period of illness or a growing family could all mean they can’t pay their monthly bills and, when this happens, debt management could be the answer to their financial worries over the a short term or in some cases long-term basis.
What is a Debt Management Plan?
Quite simply, a debt management plan is an informal arrangement we make for you with your creditors (i.e. those you owe money to), which allows you to reduce your monthly payments to an amount you can afford. What this means in practice is that you pay us one affordable payment each month and, from this, we pay your creditors each month.
