Is Debt Management a Good Option?

Mortgage Broker

It has become normal to include debt payments into your monthly costs. Most people have taken credit in the form of a bank loan or a credit card in the past, which has become difficult to pay off. So is debt management a good option for you?

If you have problem debts, there are other worries. For example, how are you going to obtain a mortgage and buy property when you have so much debt to pay back first? However, the answer might be simpler, switch to a DMP and contact a lender like Airborne Mortgages. 


These days, it’s so easy to land yourself in debt that quickly becomes overwhelming. banks, credit cards, and other lenders often have high premiums when it comes to lending money, and many people have trouble paying the capital back. It can make life stressful and difficult. 

Luckily, there are some excellent debt management solutions to help you with the problem of debt. If you’re struggling with your debt payments, you can move on to a debt management plan (DMP), which can freeze the interest or combine the debt into a manageable monthly payment.    


The most popular response to problem debt is a debt management plan. A debt management plan is an informal agreement between an individual and the creditors. Usually, the creditors agree to reduce the debt repayment. Then, third parties make the payment. 

A DMP is managed by a special DMP provider who communicates with the creditors on your behalf. If you are struggling to cover your priority debts and live a comfortable lifestyle, a DMP can help; they arrange a manageable monthly payment with creditors, reducing debt levels. 


There are undoubtedly advantages to taking out a DMP; you can freeze your interest rates allowing you to pay off the capital or reduce the capital you pay every month. That said, there are some downsides to a DMP that you need to be aware of. Here are the pros and cons.   


A DMP can be excellent for reducing your overall monthly payments and paying off your debt faster. A DMP also allows you to reduce interest rates or freeze interest rates altogether. It’s a win-win situation for individuals and creditors. These changes can improve your credit score.  


Although there are some obvious advantages to a DMP, there are also some drawbacks. For one thing, you will have to close down all your credit cards, and you will have no access to any credit while you are on a DMP. It’s also important for you to keep up with your agreed payments. 


One of the fears people have about going onto a DMP is the possibility of obtaining credit in the future. They might think that if they give up their agreed credit card repayments and sign up for a debt repayment plan, they might qualify for a mortgage in the future. That isn’t the case. 

Here at Airborne Mortgages, we specialise in offering mortgages to people regardless of their circumstances. Airborne Mortgages are approachable and knowledgeable; contact us today to speak to a mortgage advisor Leicester to discuss your circumstances.