If your financial situation is becoming a cause for concern or you have had a change of circumstances, MoneyPlus Advice could help with a Debt Management Plan.
When in a difficult financial position, we understand it can be hard to juggle payments whilst dealing with often relentless pressure from your creditors. Our advisors will carefully budget for you to ensure you can maintain your household bills as well as repay your unsecured debts.
A Debt Management Plan works by using your disposable income (the amount left after paying your essential living expenses) to repay your creditors. A financial assessment is made and a statement is sent to all of your unsecured creditors detailing your household income and expenditure and the amount you can realistically afford to pay.
We will ask for interest and charges to be stopped (however your creditors are not obliged to do this.) You then make one monthly payment to MoneyPlus Advice and we will distribute payments we have agreed with your creditors on a pro-rata basis. This means that the largest balance will get the largest percentage share of your payment (and the smallest the smallest percentage share etc).
We will then carry out a full financial review every 6 months to ensure that your payment is still affordable and maybe increasing it to ensure you get out of debt in the most efficient way.
You will be provided with 3 monthly updates on your Debt Management Plan’s progress throughout its term, you will also receive a monthly log showing you how your money is being allocated.
Are you eligible for a Debt Management Plan?
- £1000+ unsecured debts
- Minimum disposable income of £80
- 2 or more creditors
- Proof of income/benefits
See Benefits and Disadvantages for further information.
A Debt Management Plan will provide you with a light at the end of the tunnel and although it may take longer to repay your debts, you will have peace of mind that everything has been taken care of.
As with all debt solutions this could have an adverse effect on your credit rating, but if you have missed payments, have a default or County Court Judgement (CCJ) these will have already made an impact. When considering any debt solution it is important that you seek the correct advice so you can reach a decision that best suits your financial circumstances.
If you require a professional and personal service at competitive prices call us now for an obligation free assessment.