Last updated on October 1st, 2023 at 03:53 pm
Do you have debt? Worried you will never stop paying your debt off? Or do you even realize how much your debt is costing you in fees and interests every month? You need to get advice on debt management plans pronto!
I know how stressful debt can be. You don’t know you in over your head until you have to start paying those minimum balances month after month. It can feel like you are not even moving with each payment to your end goal – no debt. It’s frustrating and sometimes you don’t even know where to start. Here I am sharing a simple, calculated solution for families to no longer be choking on their debt repayments.
My biggest advice when you look into debt management plans is always make sure you can pay your bills for your family first. You need to always make sure your main bills for your home are covered. You want to be able to make those repayments to your debt even if they have to be lower amounts for a longer period of time. But that’s where you get advice and help first, to ensure you are covering all aspects of your family’s financial needs.
What is a debt management plan?
You might not have even heard of a DMP. I know, I hadn’t. This is where either you or a third party negotiate lower monthly payments to your creditors. For a more flexible solution payments can also be revised should your circumstances change, in some cases.
Wondering are you eligible for a debt management plan?
A DMP is a good solution if you are struggling to keep up with your debt repayments but can afford to still consistently pay smaller amounts over a longer period of time.
It can also benefit those whose circumstances might improve over time and have a steady stable income to rely on. It’s about paying off your debt for less stress and pressure on the whole family so make sure you don’t make it harder for yourself if you are in harder circumstances.
What are the advantages of a debt management plan?
- A DMP won’t be recorded on an insolvency register
- Shows you are still contributing to your debt in full, so your creditors will look at this more favourably
- Creditors can freeze interest and charges on your debts to help out
- Most DMPs are flexible – allowing changes to be made if your situation changes
- Reduce your monthly payments to your debts is the biggest advantage
- You can have less contact with your creditors if you opt to use a third party as they will deal with them on your behalf.
That last one is a big advantage because some people can find the creditors intimidating and are nervous to contact them directly to sort a solution out for their family. This helps you get the best solution that’s right of you and your family.
We have all been there with debt. It’s that thing that creeps up on us when we least expect it. But don’t worry they are things you can do to manage it. It’s about being practical and good at planning where your money is going in and out of each month, strategically. Don’t ever think you’re the only one that’s been in this position or the last one either.
So with the new year ahead, make sure you have a debt management plan for your family. Make it one of your new year’s resolutions to take control of your debt instead of letting it take control over you!
*Collaboration
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