Debt Management Plans (DMP's)

Debt Management Plans have grown in popularity as more people have needed to seek alternative solutions to solve their debts. A Debt Management Plan works by creditors agreeing with us to accept reduce payments over a period of time. Multiple unsecured balances are gathered in to a single monthly payment, which simplifies finances and makes them easier to manage.

As part of our service, we will also renegotiate payments to a more affordable level and seek to re-schedule payments over a longer period of time making finances more affordable.

We may also be able to get the charges and interest on your balances stopped. Whilst only unsecured debts can be included the budgeting and debt advice you receive can ensure that you maintain payments towards your secured debts and council tax or utility arrears.

Debt Management Plans are classed as a flexible solution, as they enable changes to be made to repayments if your circumstances alter – so if you receive a reduced income through illness or after losing your job, you can reduce payments accordingly to ensure the plan is still affordable to you.

Likewise, if you receive a pay increase or promotion you can increase your payments and repay your debts quicker. There are no contracts on a debt management plan either, so if you no longer need the arrangement you are free to cancel whenever you wish. This means that if you need to regain control of your finances whilst still repaying your debts, you could opt for a Debt Management Plan to help you through the difficult financial period.

DMP advantages

• A Debt Management Plan (DMP) is flexible; if your circumstances change then your payments can change as well.
• We will deal with all correspondence from your creditors so you don't have to.
• You are displaying a responsible attitude towards your debts which may be looked upon favourably should you want credit in the future.
• No long term contract, you are free to leave your debt management plan any time you wish without consequence.
• Your payments are based on what you can afford to pay.
• You get assigned your own Personal Debt Advisor, and do not have to deal with complicated call centres to speak to who you need to.

DMP disadvantages

• Until your negotiated payments are accepted, your creditor may continue to charge interest.
• You will be breaking the terms of your original credit agreements with your creditors, which may affect applications for credit.
• It may take a significant time to repay your debts although you should pay back less than your originally should have done.
• You may find it expensive, or be unable to get credit in the future.
• This will not necessarily stop creditors from passing your case to a debt collection agency, issuing default notices or seeking County Court Judgements, CCJ's.
• Whilst calls to you should stop, you can still expect to receive letters occasionally from your creditors.
• Whilst Kingston Debt Solutions will do everything they can to stop interest and charges being placed onto your debt, we have no control over whether a creditor will do this for you or not.
• Kingston Debt Solutions take a small percentage of your payment (17.5% or £25, whichever is the greater) as a monthly management fee, which is one of the cheapest Debt Management fee's in the UK. We also hold the first two monthly payments as our setup charge.

For further information, complete the contact form on the right.