What is a Debt Management Plan?
If you’re struggling to pay down your debts, a Debt Management Plan (DMP) may be for you. Our DMP is designed to help reduce your overall outstanding debt amounts by combining them into one affordable repayment schedule based on your budget.
How does it work?
After engaging Debt Rescue, one of our experienced Case Managers will be assigned to collect information for your application from creditors. Once your creditors know you’re on a DMP, all harassing phone calls will stop. The information collected from your creditors will help your Case Manager understand your financial circumstances and create a tailored solution for your individual situation.
In order to qualify for a DMP, all you have to do is be experiencing financial hardship. In other words, you just need to be struggling to meet your creditor repayments as they fall due. There are no restrictions on the amount of debt you owe, value in assets you have or income you earn. These factors only play a role in the type of DMP recommended for your situation as a DMP can be tailored for anyone struggling with debt.
3 Easy Steps
- Get in touch with us at Debt Rescue
- Your Case Manager will collect information from your creditors
- We will provide you with a tailored debt relief solution
With our Debt Management Plan, you could write off up to 80% of your debt and be debt free in 3 years. Pay what is affordable for a set period of time and creditors will write off the remaining debts.
The below example shows how you could benefit from a DMP.
EXAMPLE UNSECURED DEBTS
|Debt: $20,000||Creditors: 3|
|Total debt written off:||$11,000|
TOTAL DEBT WRITE OFF
In this example, the DMP client was able to get 55% of their debts written off, $11,000 of the client's total debt was written off at the end of their DMP.
Our clients creditors will need to agree to the DMP, and regular payments will be based on individual circumstances. Credit rating will be affected. Fees will be added to the DMP, but not charged additionally, and are subject to individual circumstances.
Types of Debt Management Plans
Our professional team understands each person’s circumstances are different, which is why we offer a range of creditor agreement options under the Debt Management Plan. This ensures the outcome achieved for you is suitable and sustainable. A summary of our Debt Management options: