Debt Management Plan Pros and Cons
Advantages
- We do allthe work of writing letter and contacting allyour creditors for you and you don’t have to worry about a thing.
- There is one single payment to make every montth – this will be to the Debt Management Organisation – and the company that makes payments to each creditor.
- You don’t have to pay different companies. Only a single payment will be made.
- If we organise the DM plan properly there will be no more Interest or charges.
- You only pay what you can afford than you will have enough to enjoy a normal life.
- In order for the debt to be paid down you won’t have speak to creditors we do that for you.
Disadvantages
- A lot of debt information is needed.
- Debt Management Plans have no legal standing.
- If your monthly payment is low and your debts are high them you will most likely be in a plan for the rest of your life.
Debt that is not included
Other types of debt that are not included are:
- Secured loans
- Leases (property)
- Hire purchase
- CSA / Maintenance arrears
- Car loans (if secured against the car)
- Rent
- Council Tax arrears
- Student Loan repayments.