Why You Shouldn’t Ditch Your Debt Management Plan
Dealing with debt is never easy. At first, when you set up a debt management plan, you’ll be spurred on by a sense of excitement and relief: you’re taking action, and you can see a light at the end of the tunnel!
Over time, the reality of living on a budget may kick in and make you feel miserable. Your circumstances may change, and you might find yourself more strapped for cash.
In time, you might become tempted to overspend, pick up a few bits in the sales or treat yourself to some luxuries that you know you shouldn’t have.
Hang in there. While it can be difficult to stick to a debt management plan, the alternative is worse.
Advantages of a DMP
The main advantage of a debt management plan is the support and encouragement you’ll get from your provider. This will help you to follow the plan over the longer term. If you find yourself struggling with the repayments, contact your debt management company and ask for advice.
Whilst on a debt management plan, calls and letters from creditors will have become less frequent. That’s because lenders have a duty to respect the fact that you’re working with a debt management company. Some may never stop calling entirely, but most should honour your payment arrangement, and that can relieve some of the stress of debt.
Ditch the plan and you’re on your own; the letters and calls will start again. But perhaps most importantly of all, you’ll lose the vital support and encouragement of your debt management company.
Making Your DMP Work
If you feel despondent, don’t feel like a failure and don’t take out more credit to make ends meet.
Firstly, review your budget, or keep track of your spending for a week to see if you are sticking to the amounts you agreed at the start of the debt management plan. Sometimes, renewing your discipline is all it takes to get back on track.
Secondly, look at your expenditure and see if you can make more savings. Can you use coupons or buy bulk packs to make your money go further?
Alternatives to a DMP
If you really feel like your debt management plan isn’t working for you, there are other options you can consider, such as bankruptcy or an individual voluntary arrangement (IVA). Have a chat with Varden Nuttall today if you want to find out more about dealing with debt.