A Debt Management Plan Scotland can:
Debt Management Plan Scotland
What is a Debt Management Plan?
Debt Advisory Services Scotland Limited offer a Debt Management Plan Scotland to people living in Scotland.
A Debt Management Plan (DMP) is an informal agreement designed to allow people who are struggling to meet their monthly debt repayments the opportunity to deal with their debts by making a single more affordable monthly payment via a debt management programme.
The debt management programme is run by a debt management company who collect the monthly payment from the debtor and pass the payments each month to their creditors until the debts are cleared.
The Debt Management Company negotiates with the creditors to freeze or reduce interest and charges being made to the accounts.
Unlike a Trust Deed or Debt Arrangement Scheme, no public register exists to record the details of those people participating in a Debt Management Plan.
Entering a DMP will result in you making lower monthly payments to your creditors. Making lower payments or missing your monthly contractual amount will result in defaults being recorded on your individual credit report. These defaults will remain on your credit report for six years.
For all Scottish debt solutions, stopping payments to your creditors may place you into further arrears and it is likely that your ability to get credit will be affected. For debt management plans we cannot guarantee a reduction in interest or charges and repaying your debt over a longer period can increase the total amount to be repaid.
Should your creditors refuse to accept the Debt Management Plan Scotland proposal there are other alternative solutions available.
A DMP may be appropriate if you have a temporary financial problem or if you can’t or don’t want to re-mortgage.
Only unsecured debts such as: personal loans, credit cards, store cards, overdrafts and catalogues can be included in you Debt Management Plan.
As secured loans and certain bills cannot be included in a Debt Management Plan, you will therefore need to ensure that your payments are maintained on the following priority debts and bills such as: mortgages, secured loans, council tax, hire purchase, utilities, TV licence, student loans and court fines.
How can a Debt Management Plan Scotland help you?
Our debt management programme will help you manage all your current debt by consolidating your monthly payments into one monthly affordable payment whilst allowing you to maintain an acceptable standard of living.
Unlike most debt management companies, Debt Advisory Services (Scotland) does not charge an arrangement fee for setting up your Debt Management Plan
Debt Management Scotland – Additional Information
How is your monthly payment calculated?
Our objective is to ensure that your monthly payment towards your Debt Management Scotland plan is set at a level you can comfortably afford, after all your essential living costs and any priority payments have been taken care of.
In calculating your monthly payment, we calculate your total net income from all sources (earnings, benefits and pensions) and your total monthly expenditure (mortgage / rent, utility bills, food, clothing, travel and other essential bills.
Your monthly payment is calculated by subtracting your total monthly expenditure from We then subtract your total income.
Your financial circumstances are reviewed at least once a year to ensure that your payment remains realistic for both you and your creditors.
Debt Management Plan Scotland and Your Credit File
Debt Management Plans are not recorded on your credit file although a marker can be made against the debts included in your debt management programme. If any individual markers are recorded, they will remain on your file until the debt is cleared
Getting a mortgage or re-mortgage with a debt management plan
Getting a mortgage at a low rate of interest will be difficult as most lenders are not happy lending to individuals who are repaying your debts through a debt management plan. Although there are specialist lenders who are willing to lend to individuals who are operating a debt management programme their interest rates will be high
Having a debt management plan together with a low credit score you will find it hard to get a good rate when re-mortgaging.