Is a Debt Management Plan right for you?
A Debt Management Plan (DMP) might be just what you need to get your finances back on track. But it isn’t suitable for everyone, so it is really important that you take the right amount of time and thought to look into whether or not a debt management plan is right for you.
Our partners will spend on average 2½ hours with you in the privacy of your home. This is arranged at a time to suit you. The aim is to be able to properly establish the true extent of your personal or household debt and to discuss with you whether a DMP is the best option for you or whether other options such as bankruptcy or an Individual Voluntary Arrangement (IVA or Trust Deed in Scotland) might be a better option.
Always remember that we are here to help you. This means we will only offer a DMP if we think this is the best plan for you and this reflects your personal preferences.
On average, the people that our partners visit and sit down with have 8 creditors and around £20,500 of unsecured debt, though it is not uncommon to see clients with over 20 creditors and £100,000 of debt. The intention is to assist anyone with more than £3,000 of debt with 3 or more Creditors. As a general guideline our partners will require you to be able to find at least £85 towards your DMP each month after allowing for all your income and expenditure, though they will take account of special circumstances and situations where there is a need to allow for repayment of arrears.
As a matter of routine our partners will deal with clients that are self-employed, retired or on benefits as well as those who are in full-time employment.
If, at the end of the home visit, our partners have identified that they are not able to directly assist you, they will either request your authority to pass your file to another debt solution provider or recommend a charitable organisation like your local Citizens Advice Bureau (CAB), if you haven’t already made contact with them yourself.
Nick Sturgeon is a small business owner who has benefitted from the experiences of success, failure and financial recovery. The author of “Small Business BIG Profit” published by FT Prentice Hall, Nick writes and speaks from the heart about Risk, Reward and the Power of Personal Enterprise.
For more information about the process and an introduction to a debt management planner, send an email to nick@smallbusinessbigprofit.co.uk with your details and situation.
