Debt Management Plan

The LifePlan is a debt management programme offered by DMA and is a way of helping people who are finding it difficult to pay off their debts.

Together with our clients we work out a realistic repayment plan to help them deal with their debt problems. We work to free you from the stress and worry of having to deal with difficult phone calls and letters from your creditors (please see our FAQs and Key Information page) and we negotiate to agree the best possible interest and repayment terms for you.

The LifePlan has many added benefits, you find out more by viewing or downloading the LifePlan information pack below.

Click here to download the Lifeplan brochure in pdf format.

Here is a summary of the main advantages and disadvantages of a Debt Management plan with MoneyVillage –

ADVANTAGES

• One single affordable monthly payment.

• An informal arrangement – this is not binding on you which means repayments can be varied or you can switch to a formal solution, such as an IVA, if your circumstances change.

• We will negotiate more affordable repayments with your creditors and request that interest and charges are suspended.

• Vital monthly costs such as mortgage/rental payments, council tax and utility bills are prioritised so as to ensure these remain affordable.

• A Personal Advisor will be allocated to you to provide on-going help and support.

DISADVANTAGES

• A creditor is not obliged to accept repayment proposals or suspend interest and charges.

• Rescheduling debts in this fashion may mean that the repayment period will increase as will the total amount to be repaid.

• The plan is not binding on creditors once established and so collection/legal action could still be taken.

• Your credit rating will be impaired by entering a Debt Management Plan. You might not be able to obtain credit in the short term and there is some likelihood that you will not be able to do so in the medium to long term. This applies to any debt solution and is unavoidable if you can no longer afford your contractual repayments.

• Debts such as secured loans, HP agreements and arrears on utility and Council Tax bills cannot be included in the plan although these will be taken into consideration when we assess how much you can afford to pay your unsecured creditors.

Please see our Key Information page for further information.