Why choose a DMP over an IVA?

People often need somebody’s assistance to aid them in sorting out their debts and moreover talking to the creditors. This is what Debt Management Plan and IVA are all about.

Lets view some of the requirements and features of both debt solutions:

Debt management plans are usually opted when the debt amount is between £3000 and £10,000 whereas IVA can be opted for when the debts are more than £10,000.

Exactly What Is A Debt Management Plan?

A Debt Management Plan or DMP is a re-payment plan offered by various debt management companies.

  • It organizes the way you can you can afford to pay each month to your creditors.
  • The debt management firm will be paying the money to all your creditors on your behalf.
  • You will only have to pay one sole payment each month directly to the debt management firm.

Is This A Best Option For Me?

It depend on your circumstances. A DMP is the best plan for the people who are able to make affordable steady payments to their creditors in a shorter time than five years.

IVA has a different working style and the debt has to be paid off in a specific time frame.

Under Debt Management Plans, debtors have to pay monthly installments with low interest rates. It offers flexibility, and does not allow slicing a specific amount from the sum, like in the case of an IVA.

Who Is Eligible for DMP?

  • For those who have debts of more than £3,000 but within  £10,000.
  • For those who have more than 3 creditors.
  • For those who have more than £100 disposable income every month.

Debt Management Plan Offers Benefits of:

  • Single monthly easy installment directly paid to the debt management firm.
  • No worries about the phone calls from your creditors.
  • The debt is paid systematically, without any financial burdens.

Both IVA and DMP have pro and cons; we strongly advise you to speak with a debt expert to understand your financial situation and choose the best option for you.

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