Debt Management

What is a debt management plan?
A debt management plan is a simple and effective way to pay your non-priority debts (i.e. debts not secured against property, such as credit cards).
Your MRA debt counsellor will calculate how much you can afford to pay your non-priority debts after your priority debts have been taken into consideration. e.g. mortgage, utility bills, council tax etc.
Can anyone have a Debt Management Plan (DMP)?
A Debt Management Plan can help in most circumstances, but it is not suitable for all. For example, if you have very low surplus income after paying the most basic living costs, it may be unsuitable.
To find out if you could benefit, please book an appointment with one of our trained debt counsellors or call 0800 612 92 23.
How long does a DMP last?
This depends on the level of debt and the amount you can comfortably afford to pay.
Is level of debt repayment fixed throughout?
No. Flexibility is one of the great advantages of a Debt Management Plan. If your income reduces, we can renegotiate to reduce your payments. Or, if your income increases, you may wish to pay off your debts more quickly.
Your Debt Management Plan will be regularly reviewed to check that it meets your needs.
How do I know when my creditors will be paid?
You will receive a monthly statement showing exactly what has been paid to each creditor and how much debt is left to pay.
Will Debt Management harm my credit rating?
Debt Management is the friendliest debt solution to your credit rating compared to IVAs or Bankruptcy. It does not have the same stigma. Having said that, if you have not been making the full contractual payments to your lenders then it is likely that your credit rating has already suffered. Once your debts have been repaid, your credit rating will start to heal itself.
Will creditors stop charging me interest?
We receive excellent co-operation from many creditors in reducing or freezing interest charges. This can help greatly in your ability to pay of your debts. However, some creditors may continue to charge interest.
Do my creditors have to accept the offers being made?
They are not legally obliged to, but most accept right away. We draw up a Financial Statement showing that the offer being made is the most you can reasonably afford to give them. We can also send them details of the payments being made to your other creditors so they can feel assured that they are being dealt with fairly.