Consider a Flexible Debt Management Plan. Why? - IVA

Living in debt makes your life extremely intense. It’s not only stressful on your credit or a financial paper, let alone in reality. If you are in debts and find it difficult to handle juggling calls from multiple creditors or irresistible chances of bankruptcy as you owe a lot of money and couldn’t sort out payments to different lenders, it might be the time to consider a debt management plan forum.

Make Affordable Monthly Payments:

Struggling with debts? Creditors contacting you every day? Facing bankruptcy? Don’t know how to deal with poor credit? If any of these situations sound similar to your own, you need a custom debt solution.

Debt Management Plan (DMP) is an informal agreement between debtor and creditors where debtor needs to pay off his loans at a reduced amount through one single, affordable monthly repayment. This amount will be distrusted between the creditors depending on how much you owe each one. Unlike other solutions such as an Individual Voluntary Arrangement or debt consolidation, etc., DMP may take longer than expected to pay down your debts. but the best thing is it will not burden you while paying off what you owe- more affordable payments than before.

Identify Whether or Not You Need a DMP :

Do you need a debt management plan? It’s down to you because there is no fix criterion to begin considering this plan. You will be depending on your own judgment and decision relative to your financial condition, debt amount and how much you can spend in monthly repayments.

For instance, if you owe a small debt amount and to a single creditor, and you feel things under control, and that you need not to worry about crashing finances or poor credit score, then you do not need a DMP. On the contrary, multiple creditors, huge debts, interest rates, scared of bailiffs, etc., and obviously all because of the massive amount of debt, then you must get a debt management plan as a right solution for you. If you are still clueless, get professional and best debt help UK from FCA-approved financial advisors.

Determine How Much You’ll Be Paying Monthly:

DMP is one of the most accommodating solutions to pay off your debts. Reason behind is that your monthly repayments depend on how much you can realistically afford to pay.

Here, you can negotiate with the creditors. Well, it may be an easy thing to manage if you have one creditor. However, you may need an intermediary like IVA Experts UK to bring about an agreement between you and your creditor after satisfactory negotiation about your monthly repayment amount.

Remember, you should stick to your agreed monthly repayments if you don’t want your creditors to opt-out of DMP since it isn’t a legally binding agreement. It is highly unlikely to happen, but only if you keep up with paying an agreed amount each month.

Bottom Line: 

Entering into a DMP means you will be paying less compared to what you do earlier – allowing you to live a stress-free life whilst repaying your debts. DMP may affect your credit score since it will remain on your file for about six years after completing the plan.

If you don’t know which debt solution will work the best for you, get 

free financial debt advice   

 from financial advisors like ours at IVA Experts, UK.