Unable to pay your debts? Is your monthly credit commitment too much?
If you are unable to pay your debts as they fall due each month, you could enter into a DMP and at Beacon we can guide you as to how best to write to your creditors to see if a compromise and/or monthly payment can be reached/agreed.
This can include a timetable of when and how much you can pay on a monthly basis.
If you have enough money left over after paying your priority creditors and essential expenses, you may be able to arrange a DMP with your other unsecured creditors.
A DMP is an informal arrangement with your creditors. DMPs are seen as flexible plans that can be amended as and when required.
A DMP is not always the best way of dealing with the debts as your creditors are not bound by the arrangement that you have entered into.
A DMP is informal and creditors can change their mind at anytime. There is also no guarantee that creditors will agree to freeze all interest and charges.
Creditors may only accept a DMP as a short-term measure; unless they know from the outset that your financial situation is unlikely to change.
DMP’s are normally used as a short-term fix in certain situations.
We do not operate DMPs but we will provide you with details of responsible charities who can assist you with a DMP.
