Joint Debt Management Plan – What You Can Do & FAQs

Are you seeking to manage your joint debts more effectively? Wondering if a joint Debt Management Plan (DMP) could be the answer?

You’ve come to the right place. Many people like yourself visit our site each month looking for guidance on debt solutions. 

In this easy-to-understand guide, we’ll cover:

•  The basics of a Debt Management Plan
•  How a joint DMP works
•  Steps to take if you’re worried about joint debts
•  Ways to possibly clear some of your debt
•  Answers to common questions about joint DMPs

We know that dealing with debt can be daunting and that you may have concerns about the impact of a joint DMP on your finances. Our team members have personal experience with debt issues. But don’t worry; we’re here to help you navigate this financial journey. 

Ready to find out more about joint Debt Management Plans and how they could help you manage your shared debts more effectively? Let’s get started!

What Is A Joint Debt Management Plan?

A joint debt management plan is a plan through which couples can pay back their debts. These are usually for joint debts or for credit cards under joint names. 

You can also get joint debt management plans for people living in the same home or sharing the same bank account. Remember that these are only for joint debts with your partner.

The living costs are calculated from the whole household income and not just the income of a single person or partner. What’s more is that the payment and the surplus income is also calculated for both the partners on a joint basis.

This is inconvenient if the couples involved in the joint DMPs are going through a separation or a divorce. The separation is definitely going to have an impact on the debt solution as both parties will have separate finances now. 

And it’s not a matter of who gets to pay what. Each partner must contribute to the joint plan to ensure the payment of their debt on time. A person going through a divorce cannot opt out of the joint plan and must see it through.

They must follow their debt solution to the end to pay off their creditors.

How Does A Joint Debt Management Plan Work?

In a joint debt management plan, the surplus income is worked out on a home basis instead of on an individual basis. This makes it easier to split the repayments of the debt and makes the payment process much faster too.

Joint debt management plans are available to all couples (even those that are now going through a separation or a divorce). If they entered the plan while they were together, they must see it through to the end.

Even if you aren’t both homeowners but share the same house, you can still opt for a joint DMP. The income is collected on a home basis and the whole household income is accounted for while calculating the monthly repayments.

In a joint DMP, it doesn’t really matter how much debt a person has individually. When you’re in a joint debt management plan, you must contribute the same amount to eliminate the debts of both partners. This is why it can be a problem for divorced couples to deal with joint DMPs.

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Afterword

DMPs are complicated to understand, and when it comes to two people, it is even harder to work out the specifics.

This is why it is important to reach out to a professional so that you have accurate information on what to do. 

If you need more support, do reach out to us on the given email address. We’ll make sure to get back to you as soon as possible. 

Good luck!

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