January is always a hard month: we’ve just had the Christmas expenditure...
Changes to your DMP are just a matter of circumstance
The average debt management plan (DMP) takes around five years to repay. With plans that span a number of years it’s unrealistic to expect things to always remain the same.
One of the reasons why we carry out a yearly review is to make sure you keep us up to date with any changes in your circumstances. You may be earning less or more money, and your expenses may have risen or fallen. Either way, at the annual review we will look at your budget again to ensure that everything is going smoothly.
However, there is no need to wait until annual review time to contact us about changes in your circumstances.
Contact us when something changes
Just as with the economy’s continuing rocky ride, changes in your own circumstances can be rapid and often unexpected. VAT has risen and fallen in the past couple of years, the cost of living has gone up markedly, and inflation and fuel costs are also a big issue. On the back of this, changes to entitlements could leave you with more or less money in your pocket.
In times of uncertainty you may worry about contacting us, especially if your DMP seems to be going smoothly. It’s human nature to avoid rocking the boat. At the same time if you’re struggling to make ends meet you would be better off speaking to us so that we could look at your budget and the options open to you.
A DMP is a flexible option; it’s an unofficial agreement between you and your creditors. The part we play is to act as a fair and impartial third party to ensure that you can reasonably afford the money you’re offering to creditors.
Sometimes, after the plan has been set up, your situation could change. It’s our job to ensure that you get the best advice however much things have altered from the original agreement.
Creditors and DMP changes
People often worry that by making changes to a plan creditors will not be happy. In reality your creditors do not want to see you in financial hardship. Changes will happen to most DMPs and if creditors need to see a revised budget they’ll know that the budget reflects your full, current financial circumstances.
You’ve already taken the first and hardest step in calling us and setting up a plan; there’s nothing wrong with making changes to an existing plan as your circumstances dictate. We don’t bite, and we’re happy to help you through any financial re-thinks you need to do.
Life goes on
The changes to your budget may be small or large; you could end up paying less into your plan, or more. It’s all about making sure we focus our best efforts on helping you get debt free as soon as you can.
Significant changes to a budget could mean that a DMP is no longer your best option, but don’t worry, in that case we’ll advise you on what alternatives are available.
Whatever life throws at you always remember that we’re only a phone call away, and we’re always ready to offer free and impartial help and advice.