Benefits of a Debt Management Plan

 

A business is made up of lots of cash inflow, credit, debt, etc, and all of this requires adequate planning and intelligent efforts. If one is struggling to manage all these debt payments, a debt management plan is a right choice for you. It is an informal agreement between you and your creditors for paying back your non-priority debts. These debts include things like credit cards, loans, and store cards. 

A DMP is not legally binding, meaning one is not tied in for a minimum period and can cancel it any time. Also, these plans are provided and managed by a DMP provider who deals with the creditors on behalf of the company. 



How to Get a DMP

It’s very important to gauge whether DMP is right for you or not. After doing this, one needs to follow these steps to set one up.

• One needs to sort the priority debts first

• Then work out the budget to see if one has enough available income to make the monthly payment

• Then choose a DMP provider 

• Check the agreement or contract carefully

Difference Between Priority and Non-Priority Debts

Priority Debts include:

• Mortgage or rent arrears

• Gas and electricity arrears

• Council tax or rates arrears

• Income tax or VAT arrears

• TV license or TV license arrears

Non-priority debts are less urgent and include things like bank loans, credit cards, student loans, water charges, and benefits overpayments. 

Benefits of DMP

•  Single Monthly Payment: A DMP consolidates the multiple payments you might be making to multiple creditors into single monthly payments. This results in a more manageable, easy-to-remember payment schedule. 

•  More affordable payments: This method often helps you secure a lower interest rate and get certain fees waived, reducing your financing charges and overall borrowing costs. 

•  Become debt-free faster: DMP gives you both financial and stress relief knowing there is an endpoint to your financial instability.

•  Built-in Discipline: Many DMPsrequire ones to make regular, timely monthly payments and help you keep track of your recoveries. This helps the companies and individuals to be disciplined with a term of their payment cycles. 

Premier Debt Management is one of the best business debt consolidation firms in New York, provides efficient and effective business debt consolidation strategies for better growth tomorrow. They are the top business debt management company in New York, helping businesses handle their unsustainable corporate debt with tailor-made corporate debt management services. Contact them today so that they can get to work immediately for your better tomorrow.


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