Debt Management Plan
What is a Debt Management Plan?
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.
An example of how your debts could be more affordable with a Debt Management Plan
- Credit card 1 £3,487
- Credit card 2 £1,016
- Loan £1,982
- Store card £1,018
- Catalogue £911
Payment before DMP: £511
An example projected case: assumes circumstances stay the same, Debt Management Plan is adhered to and successfully completed.
What a Debt Management Plan will do 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.
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.
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.
We will do our very best to make sure your lenders freeze interest and charges so that you can reduce the time it takes to repay your debts. We can’t always guarantee this will be the case as your lenders do not need to do this, but we’re pleased to say that in 88% of debts managed by us, interest and charges are frozen.
If you make all of your monthly repayments and complete the Debt Management Plan, then you will clear your unsecured debts.
One of the biggest stress factors in dealing with debts is the constant contact from lenders. With us on your side, you don’t need to worry about letters or calls from your lenders because we’ll speak to them for you!
They may still contact you from time to time during the early stages of the Plan, which is normal, but once they know that we’re dealing with your debts, they’ll contact us instead.
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 Plan
- Fees & key info
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.
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.
We will complete a 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.
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.
If your lenders do not freeze interest and charges as part of a Debt Management Plan, this will lead to an increase in the period and amount being repaid. Credit ratings will be affected in the short to medium term Your credit rating will be affected in the medium term and 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.
You can view a free publication from The Insolvency Service ‘In Debt? Dealing With Your Creditors’ which provides an overview of some of 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.