Starting a debt management plan (DMP)
When you have made the decision to sign upto a debt management (DM), the biggest hurdle people tend to face when coming on board is the first debt management payment and returning the paperwork back in a timely manner.
The page will hopefully guide you through the process of signing upto a DM plan, from speaking to your advisor to making payments and should make coming on board easier and less stressful - for further information please call us on 0845 094 2331.
Speaking to a debt advisor
You would no doubt be speaking to a debt advisor because you need help reducing and restructuring your finances. Your advisor will go through a detailed income and expenditure fact find and, once all living expenses, priority debts and your personal circumstances have been accounted for, will hopefully be able to let you know how we can help - usually this will mean a reduction in your unsecured debt repayments and consolidating the payments into one.
At this point its a good idea to arrange for the first payment to be made at some point in the near future, its often that people will put off making the first payment, most people don't like change, but delaying the payments will simply drag out the process and may even mean you incur more charges and interest from your creditors, especially is you are in arrears.
If you are happy with what we can do we will send you an application form along with a few other supporting documents which you should read carefully.
Receiving the debt management application forms
Once you have received the application form and other documents, you will find that most of the information would have been completed for you, this is to make it as easy and stress free as possible for you - all you need to do is check the information is correct and sign / date the application where asked.
We would recommend giving your debt advisor a call in order to go through the paperwork and to clear up any questions you may have.
Once you are satisfied with the paperwork and are happy to proceed simply return the paperwork and other documents requested within the pack in the free post envelopes provided - we can not act on your behalf until we receive this as it includes the authority to act - which simply means, once we receive the paperwork we can legally deal with your creditors for you
Making the first payment
Making the first payment can be a stumbling block for some as it will mean canceling and direct debits or standing orders for their existing creditors that the new debt management payment will replace - for some people this can be a bit daunting.
When you initially spoke to your advisor, after they had worked out your new payment, you would have agreed a date for the first payment, its important to stick to this in order to get your debt management plan off to a smooth start.
We need to cancel your existing payment arrangements with your creditors that will be managed by us so you can afford the new payment, and so we can make a reduced offer of payment to your creditors on your behalf.
If you owe money to the bank or building society that you bank with (such as an overdraft) we may suggest opening a new account with another bank so you can start your plan on an even keel, sometimes a fresh start means just that, a fresh start, getting in control of your finances may mean you have to change who you bank with!
The key point is to make the initial payment as agreed in order to start your new debt management plan in a positive way.
We look after your creditor debts but there will be a little bit of work required by you in order for us to help - this is typically just a case of you canceling your existing payments and arranging a new one into your client account with us.
How do I make my first payment?
Your first payment can be made however you like.
You will receive a standing order form with the application pack we send you. Most people tend to use online banking and simply set up the standing order online rather than sending the standing form back - they usually cancel their old direct debits and standing orders at the same time.
Once your first payment has been received, and we have received your application form with authority to act you will get written confirmation letting you know we will be looking after your debts as outlined in the paperwork you received.
Subsequent payments are simply made monthly - we literally look after everything else regarding your debts on the plan - its that simple.
If you do have any questions, please remember we're here to help - don't hesitate to call us on 0845 094 2331.
