Debt Management Plan (DMP)
Baines & Ernst is a leading debt solutions provider specialising in Debt Management Plans – also known as DMPs. Click here to learn more about Baines & Ernst.
What is a Debt Management Plan?
A DMP is a non-binding agreement with creditors – the companies who are owed money. What a DMP allows you to do is consolidate unsecured debt repayments into one affordable monthly repayment and repay creditors at a rate you can afford.
Why choose Baines & Ernst?
From the moment you take out a Plan with Baines & Ernst they will strive to reduce pressure straight away and arrange an affordable repayment structure for you.
Unlike other debt management companies, Baines & Ernst will make a payment* to your creditors while your Plan is being arranged – this means you won’t miss out on making any payments towards your debts and will help ease pressure from creditors. It will also help your creditors see that you are committed to a repayment plan.
Affordable repayments
Repayments are based on what you can realistically afford after you pay essential bills like rent / mortgage, utility bills, food and other secured left. The amount you’re left with is called ‘disposable income’ and it is this amount that repayments are calculated from. Baines & Ernst will contact creditors (the companies you owe money to) and will negotiate reduced repayment rates on your behalf.
On average Baines & Ernst have helped their customers reduce debt repayments by £603 a month*.
Interest and charges frozen
Interest and changes are frozen in 84% of debts managed by Baines & Ernst.
Freezing interest and charges is up to creditors, if they agree your debts can only reduce.
Reduce creditor pressure
Baines & Ernst deal with all creditor contact once the plan is in place – helping to reduce mounting pressure surrounding your debts.
Because a DMP is not a legally binding contract, creditors can still contact you, so you may hear from them from time to time. If this happens, you can refer them back to Baines & Ernst.
Clear debts on successful completion
Providing you complete the plan, a DMP will help you to clear unsecured debts.
We pay your creditors on time
Regular payment days are in place with all creditors we deal with – ensuring they receive payment on time. This means you can have complete confidence that your money will be distributed to the companies included in the DMP and not sitting in our bank account for an unnecessary amount of time.
Do you qualify for a Debt Management Plan?
DMPs are available to people with:
- Two or more creditors
- Unsecured debts of £1,000 or more
- A minimum disposable income of £100 a month
- Proof of income
Criteria above should be used as a guide. For more information, complete the enquiry form and a member of the Baines & Ernst team will get back to you.
Only unsecured debts can be included in a DMP; such as personal loans, store card, credit card, catalogue accounts and bank overdrafts. Any secured debts like a mortgage, HP loan or council tax cannot be included in a plan. Child maintenance, student loans, TV licence or other household bills are also excluded from plans.Repayment periodCredit rating
The duration of a plan differs from each individual case as it is based on debt level and repayment rates. A Baines & Ernst advisor will be able to provide more information after reviewing your personal situation.
Please note that if you enter a Debt Management Plan, you are choosing to repay debts at a reduced rate; therefore you could extend the period in which you repay your debts. Also, if creditors do not freeze interest and changes, the debt value could increase.
Unsecured debtsCredit rating
Your credit rating could already be affected if you have previously missed or made late payments. Your credit rating will be affected in the medium to long term and you could find it difficult to secure credit following a DMP.Unsecured debtsRepayment period
Payment*
While your Debt Management Plan is being arranged and negotiations with your creditors are taking place, Baines & Ernst will make a payment of £1 to each of the creditors included in the Plan. This token payment will ensure you do not miss any payments, ease pressure from creditors and show that you are committed to a solution that will help you to repay your debts.
Interested in becoming an Introducer to the Paymex Group? Visit our Introducers page.
