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Debt Management Plan

What is a Debt Management Plan?

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A Debt Management Plan is a great way to get back in control of your finances because it allows you to consolidate your debt repayments into one easier to manage, monthly repayment.

We will do a full financial review to work out what you can realistically afford to repay towards your debts. Once we have this information, we will take care of all the arrangements with your lenders and negotiate lower repayments on your behalf.

If you are struggling to juggle multiple debt repayments and feel stressed by your finances, then a simple-to-manage Debt Management Plan could be the right solution for you.

Call today for a no-obligation review, or complete the enquiry form and a member of our friendly team will call you back.

This is an example Debt Management Plan case study:

 

  • Credit card 1 £3,487
  • Credit card 2 £1,016
  • Loan £1,982
  • Store card £1,018
  • Catalogue £911

Total: £8,414

Payment Before:

£511

Payment After:

£200

Monthly Saving: £311

Payment after includes a monthly fee. View our fees.

Monthly payment is based on affordability and subject to creditor agreement. If lenders do not freeze interest and charges then the plan length and balance may increase. Your credit rating will be affected.

 

What a Debt Management Plan will do for you

Lower your debt repayments

We’ll draw up a realistic repayment plan with you – making sure you have enough cash every month to pay for all your bills and living expenses. We’ll then speak directly to your lenders and secure a lower, more affordable repayment plan for you.

We have great relationships with lenders all over the country, so when it comes to lowering your debt repayments, you can have complete confidence in us.

And once the Debt Management Plan is set up, we’ll distribute payment to your lenders every month.

What makes a Debt Management Plan different from other debt solutions, is the flexibility it offers – it’s responsive to your situation. So, if you’re financial situation improves and you want to increase repayments to clear your debts in a shorter amount of time, no problem!

In short, a Debt Management Plan lets you repay your debts at a rate you’re comfortable with.

Freeze interest and charges

We’ll request that your lenders freeze interest and charges on your debts, so your debts can only reduce. In 93% of the debts we manage we are successful in this.

Debt Management Plans are not legally binding, so lenders do not have to accept a reduced payment plan or freeze interest and charges on your debts. However, many years of experience have taught us that most lenders welcome a responsible repayment plan with lower payments based on what you can realistically afford.

Clear unsecured debts for good

If you make all of your monthly repayments and complete the Debt Management Plan, then you will clear your unsecured debts.

Reduce direct contact from lenders

Although we cannot guarantee that lenders will stop contacting you completely, we will do all we can to reduce this contact as much as possible.

While we are setting up your protocol-compliant plan, we’ll let your lenders know that we are working on your behalf. This means your lenders will start communicating with us directly.

However, if lenders continue to contact you, please do not ignore their letters or calls, please ask them to contact us instead and we will handle their questions.

Ongoing support and advice

From your initial enquiry right through to when you clear your debts, we’re with you every step of the way.

Whenever you need advice or support, our friendly team is only a phone call away.

During your Plan, we’ll keep you up-to-date on all the progress you’ve made and you’ll have access to a secure customer log-in centre where you can check on payments.

Debt Management Plans – what you need to know

What we charge and why

At Baines & Ernst, we help people beat debt by offering the highest standard of service, expert debt advice and affordable solutions. Our fees depend on your personal circumstances, and we’re always honest and upfront about these costs. Click here to learn more about our fee structure for all of our services.

What debts can be included in a Debt Management Plan?

Only unsecured debts can be included in a Debt Management Plan, this means debts not secured against your property. Household bills, child maintenance repayments and secured loans are also excluded.

Typical unsecured debts that can be included are credit cards, store cards, personal loans, payday loans, catalogue accounts, bank overdrafts.

How do you work out repayment plans?

We will complete a no obligation financial review with you to ensure all payments towards living expenses, rent / mortgage and household bills have been taken into account and you have enough money to pay for these every month.

The money that is left – your disposable income – is what we will use to calculate an affordable repayment plan for you. If you are happy with this and decide to enter into a Debt Management Plan, we can then begin negotiations with your lenders.

What happens if lenders do not freeze interest and charges?

In 93% of the debts we manage the interest and charges are frozen, If lenders do not freeze interest and charges this could lead to an increase in the period over which you repay your debts and the amount to be repaid.

Will my credit rating be affected?

If you have already struggled to make repayments on time or have missed them altogether, your credit rating may already be affected.

With a Debt Management Plan your credit rating will be affected in the medium term because you will not be repaying your debts at the rate you originally agreed with your lenders.

It is also worth noting that if you have been issued a default notice during the period of the Debt Management Plan, this will remain on your credit record for six years from the date the notice was issued.

Is there a cooling off period?

There is a cooling off period of 14 calendar days from when the forms are signed and returned to us, in which you can cancel the Debt Management Plan. You can cancel in writing and any fees paid will be refunded.

Insolvency Service guide

You can download the free guide from The Insolvency Service. ‘In Debt? Dealing With Your Creditors’ which provides an overview to dealing with debt and the debt solutions that may be available to you.

Alternatively, if you’re in Northern Ireland, you could look at the Department of Enterprise, Trade and Investments ‘In debt? Dealing with Creditors’ guide, here. Residents of Scotland can also look at the Scottish Governments ‘Debt Advice and Information Package’ guide here.

Find the right solution

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  • Total unsecured debt: £500

  • This field is for validation purposes and should be left unchanged.

Find the right solution

Answer a few simple questions and we'll help you find your solution.
  • Total unsecured debt: £500

  • This field is for validation purposes and should be left unchanged.

Debt advice you
can trust...

dmpp

As a Debt Management Plan Protocol Approved company we are committed to providing exceptional standards of service. We are proud members of DEMSA and follow their Code of Practice which is approved by the TSI.

Authorised and regulated by the Financial Conduct Authority

Money Advice Service

You can get free debt advice from the Money Advice Service – an organisation set up by the Government to offer free and impartial advice to those in debt. Click here for more information.


Download free get out of debt guide