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UK Debt Management Company Releases Top 7 Questions For Debt Management Plans (DMPs)
UK Debt Management Company Releases Top 7 Questions For Debt Management Plans (DMPs)
Abbot & Edwards, a UK debt management company ( http://www.abbotandedwards.co.uk/debt-management-uk.htm ) has released the top 7 questions about debt management plans.
Victoria,
London,
United Kingdom
(prbd.net)
02/11/2011
Abbot & Edwards, a UK debt management company ( http://www.abbotandedwards.co.uk/debt-management-uk.htm ) has released the top 7 questions about debt management plans. These questions are a helpful guide for those considering this option to resolve debt issues.
Debt management plans (DMPs) are very common solutions to debt issues in the United Kingdom. An individual has a high possibility of recovering financially using this method of repair. However, these types of strategies are not for everyone. In order to make a decision, one must analyse the overall situation and ask questions about his or her individual circumstances.
The following are seven of the most commonly asked questions regarding debt management plans and will help you make a decision:
1. What Is A DMP-Debt Management Plan?
A debt management plan is a strategy of organising and repaying debt. A credit counselling company with the consumer’s help usually designs the plan. Each month the debtor makes a lump sum payment to the debt management company.
2. What Does A Debt Management Company ( http://www.abbotandedwards.co.uk/debt-management-uk.htm ) Do?
The company uses your funds to pay off your monthly credit card bills, loan payments, and other credit accounts. This company will also negotiate with the lenders on the debtor’s behalf. During negotiations, the debt management company will attempt to persuade the lenders to drop interest and finance charges. There is no guarantee that the negotiations will be successful, but most lenders are more flexible with third party organisation companies.
3. What Will The Monthly Payment Be?
The monthly payment for a DMP will depend on your situation. You will have the opportunity to discuss your debts and the overall picture with the debt management company. You will give the company a list of your creditors and balances. The two of you will come up with a figure that works best for your monthly payment.
4. For What Time Period Will The DMP (Debt Management Plan) Last?
The duration of a DMP (debt management plan) depends on the amount of debt you have and how much your monthly payment is. The larger your monthly payment is, the faster you can complete your debt management program. Your monthly payment depends on what you can handle. The average debt management plan lasts between two to five years, but some can end more rapidly.
5. How Will A DMP affect my credit?
If you are currently behind on your payments enough to where your credit is reflected poorly, a DMP will not change that immediately. As you gradually make payments toward your balances, your credit score will increase.
6. Will I Lose My House?
Not necessarily. You are not obligated to offer your house in a debt management plan. That option is left up to you as the owner.
7. Should I Just File For Bankruptcy Instead?
The decision is yours on whether to file for bankruptcy or not. However, bankruptcy will disrupt your credit standing for seven to ten years. A DMP will not.
About Abbot & Edwards
Abbot & Edwards are a UK Debt Management company with a team of financial consultants whom are passionately committed to helping their customers resolve their financial issues in the most effective and economic manner.
If you need to get free expert confidential advice today call 0800 533 5444.
Press Contact:
Jackie Bourke
Address:
95 Wilton Road, Suite 718,
Victoria
London SW1V 1BZ
United Kingdom
Phone:
0207 099 6158
Website:
http://www.abbotandedwards.co.uk
E-mail:
cwa@abbotandedwards.co.uk
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