Get Free Advice on Debt Management Plans from SwiftDebtAssist UK

What is Debt management plan?

A debt management plan is a program that is designed to help people regain control of their finances while reducing outstanding money. You can make affordable repayments to creditors by writing off the debts. Any unfortunate case where you cannot repay them to the creditors will have these loans piling up as debts. Your piled-up debts which you couldn’t pay due to financial situations can be paid by taking debt management plans that help you conquer your debts in a hassle freeway.

It is a way to control your debts and reduce the number of payments that you make to the creditor each month. This will save you on interest money and other payments. The Government of the UK has put forward a few debt management plans for the public, which will help in reducing the debts. At SwiftDebtAssist, you can choose and apply for the suitable one to live a debt-free life.

Representative Example For Debt Management

Current Monthly Payments

£625

% Debt Written Off

80%

Check If You Qualify

Debt Amount After Write Off

£3000

Revised Monthly Payments

£125

Presuming that you owe your creditors the following debts –

1	Personal Loans	£6,000
2	Credit Cards	£2,700
3	Utility Bills	£1,300
4	Overdrafts	£2,000
5	Other Debts	£3,000
Total Debt Amount		£15,000

Eligibility Criteria

Before applying for the debt management solution, make sure you satisfy all the eligibility criteria. The UK government has put forward a few qualifying benchmarks that have to be satisfied and qualified in order to avail of the service.

Age

The individual applying should be at least 21 years of age to get qualified.

Residency

The applicant has to be a legal UK resident, only then he is eligible for the service.

Address

An individual has to have a permanent UK address as proof of staying in UK.

Income

In order to get qualified for the service, the applicant has to have a regular income.

Bank Account

An active bank account will get the individual qualified for the service easily.

Bankruptcy

The applicant applying for the service should not have been bankrupt in the past year.

Things to Remember

Time Period

If you are applying for a debt management plan, then it may take 36 to 60 months to repay debts.

Check the Payments

You need to review your monthly payment statements to ensure that the IP is paying or not.

Avoid New Credit

Try not to take any new credit or loan as this will lead to several penalties that you have to face.

Improves Credit Report

If you make regular and timely payments to your creditors, then you can improve your credit score over time.

How to Apply

We know that it is difficult to be stressed under debts, so we provide the most convenient way to clear your debts. Your situation will be thoroughly analyzed by the Insolvency Practitioner from our connections before giving you a plan of action.

Online Form

Submit all your required details through the online form.

Insolvency practitioner (IP)

Get connected with the legal IP regarding debt advice.

Debt Free

Start paying off the debts according to the plan to become debt-free.

Frequently Asked Questions

Customarily, a DMP is a type of debt help solution availing which people can repay their debts in a more manageable way to their creditors. With a DMP, your debt issues and your financial circumstances will be scrutinized well by the insolvency practitioner, and they will persuade your creditors to reduce the debts. If most creditors agree with the debt help solution, your debts will be reduced, and you will have to repay affordable amounts for a fixed period of time.

Any individual who is a UK resident can avail a DMP. There are many different debt help solutions in the UK, and you can consult expert advisors about which is the most suitable one for you. Typically, you will need to have debts that are unaffordable with a low disposable income of £50 and fewer assets valuing up to £1000. Also, a DMP can be availed only by residents of England, Wales, and Northern Ireland.

Most DMPs usually last for a period of 3 - 5 years. During this period, you will have to make affordable repayments as per the agreed program, and any pending debts after completion of the tenure will be waived off. If circumstances allow, the debtors can repay the debts earlier, and complete the plan successfully. However, under genuine situations, the repayment period could also be extended.

Most times, a DMP is availed to write off unsecured debts. These unsecured debts are categorized broadly as Priority and Non-Priority debts. The Priority debts include - Housing Rent, Secured Loans, Income Tax, Court Fines, Council Tax, Utility bills, National Insurance, etc., whereas the Non-Priority debts include - Personal Loans, Bank Loans, Overdrafts, Credit Cards, Money taken from friends or family, etc. Although secured loans are not usually considered, depending on the situation a mortgage or equity home loan are acknowledged for a DMP.

Availing any DMP will leave a temporary impact on your credit rating. However, by making regular repayments as per the DMP schedule will help you bring your credit rating back on track. Every debt help solution is a private legal agreement in between you, your creditor, and your IP. Although a record of your debts will be recorded on the public Insolvency Register, it shall be removed soon after completion of the DMP.

Debt Management Plan