Are you worried about mounting debt? Do you feel overwhelmed by calls and letters from creditors saying that you owe money? You're by no means alone: at least thirteen million people in the UK are struggling with heavy debt, according to recent estimates. Of these, around six million are low-income families with debts relating to non-priority debts, such as credit cards, store cards, bank loans, 'doorstep' loans, payday loans, and overdraft facilities.At Prescient Accounting, we understand the stress and anxiety debt can cause. That's why we offer comprehensive, common-sense debt management plan (DMP) services to help you regain control of your finances and get back on track.
Let us know what you need from your accountants, we’re happy to help.
We believe that the role of the accountant is much more than dealing with pure compliance. That’s why we’re offering a free video or telephone call with one of our team of chartered accountants, to give you straightforward and open dialogue about your tax and accounting affairs.
A DMP is an informal agreement between you and your creditors, negotiated by Prescient Accounting on your behalf. It tailors a plan to pay off all your debt with one monthly payment that you can afford, based on your circumstances, income and expenses. This single, consolidated payment is then distributed to your creditors pro rata, meaning everyone gets a share.
Generally speaking, there is no set time limit for each plan, as they keep rolling for as long as is necessary to pay off your debts. However, most tend to last between five and ten years.
These plans are not legally binding and can be cancelled at any time.
Being in debt can leave you feeling lost and desperate. It can affect your mental and physical health, often extending to all areas of your life, including your work and social experiences. If you're in this situation, Prescient Accounting could have the solution. Our comprehensive DMP service offers you a path to financial freedom, and we advise and support you through every step.
The last thing you need is more pressure, so we start with a friendly chat. During your no-obligation consultation, you'll meet one of our experienced advisors. In a confidential setting, you can unpack your worries and openly discuss your financial situation. We'll listen attentively, understand your unique circumstances, and assess your eligibility for one of our debt management plans. But if a DMP isn't the perfect fit, don't fret! We'll explore other debt solutions like IVAs or consolidation loans, always advocating for the option that best serves your needs.
Knowledge is power, and understanding your financial landscape is crucial to crafting a successful DMP. After getting to know you, we'll look into the details of your income, expenses, and debts. This in-depth assessment paints a clear picture of your financial standing, allowing us to tailor a DMP proposal that's realistic and sustainable for you. We'll analyse your available income streams, identify essential and non-essential expenses*, and map out your existing debts, uncovering any hidden fees that might be weighing you down. With this clear picture, we can build a personalised DMP plan that fits perfectly into your financial realities.
*Don't worry, these definitions are pretty broad – we'll discuss these in full at the consultation
People in debt are always plagued by relentless calls and intimidating letters. When you sign up to our DMP, we'll put a stop to them immediately (although they can still send annual statements and the odd default notice - simply forward these on to us, do not contact the creditor directly). Once your DMP proposal is ready, we'll take over as your expert negotiators. We'll confidently present your plan to all your creditors, leveraging our extensive experience and deep understanding of debt regulations to secure the best possible terms for you. We'll fight to freeze interest and charges, potentially reduce your overall debt amount, and negotiate reduced payments that you can comfortably manage. No more juggling multiple debtors; we'll be your single point of contact, freeing you to focus on regaining control of your finances.
With your creditors on board, it's time to set your debt repayment journey in motion. We'll handle the logistics seamlessly, ensuring your monthly payments are collected and distributed efficiently to your creditors. Forget late fees and missed deadlines; we'll take care of everything, guaranteeing consistent and transparent debt repayment. You'll have 24/7 access to a secure online portal to track your progress, view statements, and stay informed every step of the way. This level of transparency and accessibility empowers you to feel truly in control of your financial future.
Debt repayment isn't a sprint; it's a marathon. But you don't have to run it alone. Prescient Accounting stays by your side every step of the way, offering ongoing support and guidance. We'll regularly review your DMP, ensuring it remains aligned with your evolving financial situation. Need budgeting tips or helpful debt-management strategies? We're just a phone call away, ready to offer expert debt advice and emotional support. Our commitment goes beyond simply managing your debt; we're dedicated to empowering you with the knowledge and confidence to build a financially secure future.
Remember, at Prescient Accounting, we believe in the power of financial freedom. With our comprehensive DMP process and unwavering support, you can untangle the web of debt and confidently stride towards a brighter financial future. Contact us today for your free consultation, and let's start your journey together.
It all depends on the type of debt involved, as some DMP providers don't include debts related to secured loans, such as student loans. They also may not be keen to include your mortgage or auto loan.
Other than this, a DMP may be suitable if:
Remember: DMPs aren't a magic bullet, and other debt solutions may be more appropriate depending on your circumstances. Prescient Accounting will provide you with impartial advice and help you choose the best option for your situation.
We place a high value on honesty, openness and integrity; if we feel that a Prescient Accounting debt management plan is not suitable for your circumstances, we will let you know as soon as possible and provide resources to guide you along the right path.
Before finding the right plan, it's imperative to find the right DMP provider. Not all debt management companies are equal, sadly, and there are countless scams or unscrupulous companies operating in the UK.
Many of these will charge high fees, potentially leaving you in a worse position than before. And if the firm itself closes down, you'll be left with nothing.
Others use spurious terms to tempt you into believing that you have no legal obligation to pay back any money owed (such as Sovereign Citizen and Strawman). These will, inevitably, leave you facing legal action.
The best way to protect yourself from fraudsters is to:
If you choose an unauthorised DMP provider, you won't be able to raise a complaint with the Financial Ombudsman, and neither will you be protected by the FCA if anything goes wrong.
With Prescient Accounting, however, you can rest assured that you are in safe hands. Our duty is to you, the client, and we will endeavour to find the best way forward to relieve your debt responsibilities.
Let us know what you need from your accountants, we’re happy to help.
We believe that the role of the accountant is much more than dealing with pure compliance. That’s why we’re offering a free video or telephone call with one of our team of chartered accountants, to give you straightforward and open dialogue about your tax and accounting affairs.
Here's what you can expect:
Don't let debt problems control your life; Contact Prescient Accounting today for a free, no-obligation consultation where one of our friendly team members will offer a sympathetic ear and a practical approach to overcoming your debt.
Our experienced team is here to help you take back control of your finances and pave the way to a debt-free future.
Debt planning involves strategising your financial commitments to efficiently manage and repay debts. It helps by providing a clear path to financial stability through prioritised repayments and budget adjustments.
Consolidating multiple debts into a single loan can save money over time by securing a lower interest rate and simplifying monthly payments, making it easier to manage finances.
A debt management plan may initially impact your credit score as creditors may report your participation. However, consistent on-time payments can improve your credit score over time.
When struggling with debt, begin by reviewing your finances to understand your total debt, then consider contacting a debt advice service for guidance on managing and repaying your debts.
Yes, it's possible to negotiate debt settlements independently by contacting creditors and discussing possible settlement options, but it may be beneficial to seek advice or use a debt settlement service for better results.
Defaulting on debt repayment plans can lead to severe consequences, including damage to your credit score, increased debt due to late fees and interest, and potential legal action from creditors.
We believe that the role of the accountant is much more than dealing with pure compliance. That’s why we’re offering a free video or telephone call with one of our team of chartered accountants, to give you straightforward and open dialogue about your tax and accounting affairs.
We are chartered accountants and tax advisers, working with individuals and small and medium-sized businesses. We're a full-service firm, helping people and businesses with all of their tax and accounting needs. About us
