What can a Debt Management Plan do for you?
Every type of debt solution has its plus and minus points, and that’s why some could be perfectly suitable for you while others are not. Here at BlueSky Finance, we know all about the various options that are available, and we can offer guidance on which ones are best suited for your individual circumstances.
One of the available solutions is a Debt Management Plan (DMP). It provides an opportunity to reduce your monthly payments to your creditors, leaving you with a single payment that we can then distribute accordingly to the companies that you owe money to. There are several benefits to this, but it should be noted there are disadvantages as well.
A DMP can help to reduce your stress levels, knowing that you’re now paying only what you can afford. You won’t have to be missing the odd payment because you simply couldn’t keep up, and those creditors involved in the DMP will all be receiving a monthly sum of money, even if that amount isn’t as much as they would want.
It’s worth noting, however, that creditors can still contact you even after the DMP has begun, and that they they’re under no obligation to accept the terms of the agreement. The scheme doesn’t cover certain debts, including mortgage and rent arrears, court fines, child support, hire purchase agreements or several others.
The DMP can be used for items such as:
- Bank overdrafts
- Personal loans
- Credit card debts
- Loans from friends or family members
Things to consider when signing up to a DMP
You should be aware that creditors can still ask for the full debt to be paid back at a later date, so this isn’t a way to simply write off your debts to make them disappear. Also, if you miss a payment the whole agreement could be declared void. Signing up to a Debt Management Plan will also have an effect on your credit rating for several years.
Should you wish to enquire about a Debt Management Plan, we can provide you with general information. Should you then wish to act on this information, we at BlueSky Finance can refer you to a 3rd party company who can give you full advice on this. The scheme will leave you with enough money for travel, food and other general living expenses.
Here at BlueSky Finance, our mission is to guide you through the seemingly endless maze of debt. We know how stressful it can be to have to deal with creditors constantly, especially when you’re trying to juggle payments to keep all of the wolves from the door. It’s not easy, but with our help and support you can get through this.
To find out more about our services, call the team at BlueSky Finance today on 0141 488 2212. The help you need is just a phone call away.