If you find yourself in a large amount of debt, or you’re struggling to keep on top of your repayments, a free debt management plan (DMP) might be the solution to your problems. These plans help you to manage your debts in a structured way, allowing you to gain control over not only your finances, but also allows you to meet your payments to those you owe money to – your creditors.
You can write a DMP yourself, however if you struggle with money, or maths, then it might be better to have a third party write one for you. Most companies who write debt management plans will charge a fee, but there are several charities and organisations that can also provide free debt advise.
Before you write your plan, it’s important to consider whether it’s the right option for your debt management. Debt management plans aren’t suitable for everyone, so be sure to explore other options before writing your plan.
If you’ve decided a DMP is the right solution for you, and you’ve chosen to write your own, you’ll need to work out a budget you’re able to live on, which excludes your debt repayments. If you have a monthly surplus, you’ll be able to put this toward repaying your debts.
You can then contact those you owe money to (your creditors), and inform them of your plan, and the amount you can afford to repay each month. Debt companies will be able to consolidate this into one payment, and pay each creditor on your behalf; however there is usually a fee for this service.
Debt management plans ensures that every penny available works toward making you debt free, and can help you regain control of your finances.
