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If you and your partner are struggling to keep up with your monthly debt repayments then a joint debt management plan (DMP) could be a solution.
In a debt management plan your debts are consolidated and repayments reduced so that you pay a single regular amount. You continue to repay your debts but at a rate you can afford and so removing the stress of trying to juggle your finances at the end of each month. A joint DMP works in much the same way except that you and your partner's finances will be considered as one.
How much would we pay in a shared debt management plan?
In any debt management arrangement the amount you pay will depend on how much disposable income you have. When starting a joint DMP you would simply calculate the disposable income of your household which will be total combined income minus shared essential expenses. The size of your debts and how willing your creditors are to negotiate will also affect how much you pay.
What debts can be included in a joint debt management plan?
Only unsecured debts can be included in a debt management plan. Examples of unsecured debt include personal loans, credit and store cards and bank overdrafts. A DMP cannot be used to help you with mortgages or other secured loan payments.
What are the benefits and drawbacks of a joint DMP?
Debt management plans are informal arrangements and so can be quite flexible. If your financial circumstances change for better or worse then in many cases you will be able to change your payments. This makes debt management ideal for people whose financial problems are only temporary, for example due to a period of unemployment. The downsides are that it will take you longer to repay your debts and your credit rating will be affected.
To find out more joint debt management plans and other ways to solve your financial problems call us on free phone 0800 028 4422. Alternatively to request a call back simply complete the enquiry form.
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