A Debt Management Plan - DMP is an arrangement that Madison Financial will implement between you and your creditors. A Debt Management is an informal way to repay you creditor ’ s one affordable monthly payment until you are debt free. When we negotiates a debt management plan with your creditors we will endeavour to have the interest and charges being applied on your accounts frozen and stopped, however this is not a guaranteed but we will do everything to unsure this happens

What are the Pros and Cons of a Debt Management Plan (DMP)? Debt Management Plans – DMPs Pros and Cons:

Simply call our debt free helpline and speak to one of our experienced debt advisors and they will talk you through all you financial option and all the available Madison Financial , alternatively you can take our Debt Test and one of our advisors will call you back.

You can start the process of a debt management plan, straight away with Madison Financial and once you have returned all our documentation and made your first payment we can start speaking to your creditors. Your creditors will normally keep contact with you for the first 8/10 weeks. Your debt management plan

Step One – Complete a full fact find with Madison Financial - This will give us an idea of where you finances are, such as who your creditors are, Balances, monthly payments,Income and expenditure and your disposable income (the figure you can afford to pay to your creditors).

Step Two – Calculate Your Disposable Income (DI) - Using your financial statement Madison Financial will calculate you Disposable Income (DI). Your Disposable Income (DI) is calculated by taking all your household expenditure away from you household income.

Step Three – Paperwork – Madison Financial will then complete your application and forward that to you for you to read, sign and return. In this paperwork there will be, your financial statement, a list of your creditors, our terms and conditions and a letter of authority (Your Authority to deal with your debts). All this must be completed and returned back to us to proceed with your debt management plan..

Step Four – Creditor Contact – Madison Financial will start putting your debt management plan in place and start speaking to your creditors once you have returned you documentation and made you administration payment.

Step Five – Reviews – Madison Financial will conduct annual reviews on your debt management plan to ensure you management plan remains affordable, you must always keep us updated with any changes in your circumstances so we can ensure your debt management plan remains affordable

Yes, Madison Financial do charge an administration fee on our debt management plans, this covers the cost for the administration staff to complete your fact find, put together all the relevant paperwork, draw up all your creditor letter, phone calls and stationary.

YES, you can cancel your agreement at anytime. Madison Financial may ask for that in writing so we can inform your creditors that we are not managing you debts anymore. REMEMBER, don’t cancel your Debt Management Plan if you are struggling with your monthly payments, speak Madison Financial and we may be able to reduce your payment.

Madison Financial will take your first payment over the telephone by card, or you can pay by cheque, giro or cash. Your second and subsequent payments are to be made by Standing Order Mandate or monthly giro and cash payments.

By entering into a Debt Management Plan your creditors can issue a default notice as you are defaulting on your original credit agreement. If you receive a default it doesn't automatically mean the creditor is going to take legal action. The default will appear on your credit file for 6 years from the date it was issued. A default notice will stop you taking on any further credit, which to be honest may not be a bad thing.

NO, you will not be able to use your existing credit cards or store cards whilst you are on a debt management plan. Your creditors will not freeze interest and charges on your debt management plan if you use your cards.

No, It is always the priority of your debt management company to ensure that your property is not at risk and allowances will be made within your income and expenditure to keep up the payments on any mortgages or loans secured on your property. Providing you do this then there is no reason why your property should be at risk.

A debt management plan will only help you make reduced payments to your unsecured creditors, therefore the debts that can be included are: Personal loans (loans taken to purchase cars are fine but Hire Purchase (HP) agreements cannot be included), cards ,Store cards, Catalogues ,Overdrafts. Secured debts can't be included in debt management plans because any payments on secured debts that aren't met in full, can lead to the goods being repossessed. This website provides details on house repossession and car repossession, which are all consequences of not maintaining mortgage or hire purchase payments.