There are a few people who don’t worry about their debts. If you are struggling with your debts for years after years and now want to do really something about it, then you might choose Citizens Advice Debt Management Plan solutions.
Here you can find a range of options to efficiently deal with your debts. If you are confused about what to do, then you can definitely go through this section. Secure your financial condition from a suitable help from Citizens Advice.
Citizens Advice Debt Management Plan:
Debt Management Plan(DMP) is one of the best debt insolvency plans when you are having difficulty with debts associated with your credit cards. Well, the credit card might be replaced with a loan or store card. Basically, it is good if you want to close the chapter of all your unsecured debts.
A DMP is a general agreement between you and your creditors. The option is to set all the installments into only one monthly installment and that has to be affordable for the consumer. To get a DMP for you, you must contact a DMP provider. This DMP provider acts as a medium between you and your creditor. You might opt for the Citizens Advice Debt Management Plan.
Well, you are able to cancel this agreement at any time. There is no legal obstruction that you can’t cancel this particular plan for a minimum period of time.
Do I Qualify for DMP?
If you are burdened with tackling high rising debts over your cards, then you might be thinking to apply for DMP. But it is better to go through the eligibility qualifications for DMP. So, go through the eligibility criteria for applying to DMP.
- If you are in the state of paying a monthly installment on your secured debts, then you might be facing issues when it comes to credit cards and other loans.
- You want someone else to face your creditors.
- You want to merge up all your credit card loans into a single monthly repayment.
If you think that all the above-mentioned points are qualifying, then you can surely ask help from Citizens Advice National Debtline help. By the way, you have to keep some other points while applying for a DMP.
- The plan can take a longer period to repay off the debt, completely. Because you are paying a lesser amount each month.
- Creditors might not lower the interest rate.
- You have to pay a charge or fee to the DMP provider. Afford this service if only your financial condition permits you.
- Your creditors can continuously contact you. They might refuse to help you, furthermore.
- The credit history of yours might show up DMP. You might get difficulty while accessing further credits in the near future.
If you think that you can handle all these things, then you are welcome to DMP services of Citizens Advice Debt help.
How to Apply for Citizens Advice Debt Management Plan?
It is recommendable to talk to a financial advisor before you are going to apply for a debt solution. An expert financial advisor can suggest the pros and cons of a particular debt solution. You can get a piece of free advice from online debt advisors. After all, if you have set your mind to opt for a DMP, then you have to perform the steps cited below.
- You should sort out all your secured or priority debts, at first.
- Make a strict monthly budget so that you can save some money to repay the unsecured debts through DMP.
- It will be great if you get assistance from a free DMP provider. Otherwise, look out for a DMP provider after comparing some DMP providers.
- When the agreement gets ready, you should go through it carefully. Check out the consequences of failing to submit the monthly repayments.
What About the Payments of DMP?
Along with the monthly repayment, you have to pay a fee to your DMP provider, too. Some DMP providers do it for free. If you are confused about getting a paid or free service, then no need to worry.
A DMP provider generally works on your behalf to manage a settlement between you and your creditors. But there are charities available who are willingly doing it for free. The creditors need to pay them if you hire them.
You might think that you would get a better DMP service from a paid DMP provider. Well, it is not true. You can get a better service from a free DMP provider, too. There are loads of charities available for free DMP providings. Check them and find the appropriate Citizens Advice Debt Management Plan provider for you. You might consider the nearest Citizens Advice Bureau debt for consultation.
Citizens Advice Debt Relief Order:
Are you left with not so sufficient money or assets to pay off your debts? Then you can switch to a Citizens Advice Debt Relief Order to get your debts written off. If you want to know if you are qualified for the debt insolvency or not, track this section to discover in detail.
Debt Relief Order is not for those who live in Scotland. Basically, this plan is going to freeze your debt payments for 12 months or so. After this period, if the financial condition of yours doesn’t improve, then the debts get written off by your creditors.
Well, there are some specific terms and conditions. A Debt Relief Order(DRO) is a good choice if you qualify the below-listed things.
- The amount of your debt is £20,000 or less than this.
- You don’t own home after your name.
- You are left with no other valuable assets.
- There is no consistent source of income.
If you have applied for a DRO, then you need not make any payments towards your debts. Creditors won’t chase you anymore for a definite time of period. But keep in mind that you might have to repay the debt in full if your financial condition improves within the stated period. When the period gets over and your financial situation stays the same, then the debts might get written off.
Talk to a financial advisor before getting a DRO. You might consider getting help from the Citizens Advice Debt solutions. Keep in mind that you have to pay a wage of £90 for the processing of DRO.
Do I Qualify for DRO?
Not everyone is capable of issuing a DRO plan. There are certain eligibility criteria for getting qualified for DRO. Check them out and find out if you are capable of applying for a DRO.
- You can’t repay off the debts anymore.
- The amount of debt is less than or equal to £20000.
- You can’t save more than £50 each month after paying for your rent, food, and other household expenses.
- You don’t have a home after your name.
- You don’t possess assets priced not more than £1000. Additionally, you can’t have a car worth more than £1000, unless you are specially-abled and you use that vehicle for your disability.
- You haven’t issued a DRO in the last six years. You can’t have other debt insolvencies.
- You are a resident of England or Wales for the last three years, at least.
Additional Information on Debt Relief Order:
You have to assign a DRO advisor in order to apply for DRO. There are a couple of things that you need to confess before your DRO. Also, make sure that you haven’t done these things in the past two years.
- Clarify that you have donated assets.
- You have sold your assets at a lesser amount to deal with the debt.
- Show them one example that you have fully paid a relative rather than paying a creditor before.
If you do any of the above-listed things, then the application for DRO can get a refusal.
Debts Considerable under DRO
There are some restrictions over the kinds of debts for which you can apply for DRO. Not every debt can have DRO. The included debts under DRO are:
- Credit cards and loans
- Arrears associated with utility bills, income tax, telephone bills, rent, council tax, etc.
- Debts of your business
- Benefits over your payment
- Bills for vets or solicitor services
- Debts from your family and friends
- Agreements like purchase now and pay later
- Hiring conditional sale agreements
Debts Not Considerable under DRO
You have to pay off these below-mentioned debts even though you qualify for a DRO.
- Student loans
- Court fines or charges related to criminal activity
- Child support and maintenance
- Loans related to social funds
- Death and injury compensations
You are unable to write off these debts through Citizens Advice Debt Relief Order.
Is DRO Right for Me?
A DRO is undoubtedly a useful option to free you from your debts but it might affect you from several other ways. We have mentioned some of the consequences of applying to DRO.
- You need to return those items that you have bought on the condition of hire purchase.
- The record of DRO is going to leave its impression on your credit history for six years. You can’t afford a credit or a home in these years.
- Your bank account can be closed. Thus, you have to issue a new bank account.
- Your tenancy agreement can get affected due to DRO.
- DRO can affect your British Citizenship. You can contact an immigration expert to know more about this process.
- You can’t borrow £500 or more from your creditor without informing him about the DRO.
- Moreover, you can’t get into promoting a company after applying for DRO. In addition to this, you can’t be a company director without valid permission from the court.
Consider these points before getting a DRO.
How to Apply for a DRO?
If you have already decided to opt for a DRO plan, then you have to perform the upcoming steps. Obviously, consider a financial advisor before applying for DRO.
- You should look for a DRO adviser from Citizens Advice debt management service.
- Tell the advisor everything related to your financial condition and why you are issuing it.
- Next, you need to pay off the DRO fee.
- It’s up to the official receiver to sanction a DRO or not for you. You should cooperate with the official receiver after applying for the DRO.
If your application gets refused, you must be provided with the valid reasons for refusal. Go through them and make sure that you can apply once again. Reach the nearest Citizens Advice Debt Management Plan centre for further help.<