Manage Overtime Payments with Debt Management

Enrollment into debt management plan means you are agree to make fixed monthly payment according to the terms of the DMP towards your debts. The payment amount will be based upon certain factors that include your income and minimum household expenses. But if you are getting extra due to overtime payments then you will be wonder to know that you need to use this money towards debt contribution that you wish to keep for savings or other expenses.

DMP based upon regular income sources. Occasionally, it doesn?t include overtime payments or bonuses in contribution. It may happen in some months that you are unable to make payment in debt management plan due to short cash or other unexpected financial expenses. Debt management payments are based upon the steady source of income that will further make it comfortable for debtor to arrange payments.

Some employment arrangements provide guaranteed overtime. In such options, creditors may ask to make extra contribution per month towards the debts. It is not that according to the plan you will need to adjust monthly payments each month. It will also be harder for creditor to accept payments by including overtime pays each month. Sometimes, you may receive more than the expected payments. In such situations, it is advised not to exceed your monthly payments.

If you are getting extra money then use it in smart ways. Contribute the amount for emergency fund so that you can avoid taking any new loan in future. It is good idea to keep reserved cash for six to twelve months. You can also use this amount for debt settlement. When you think you have lump sum amount to settle your debts then contract your creditor and ask him for debt settlement. It is good idea to save money. Creditors generally get ready to write off remaining amounts if you are paying lump sum amount towards debt in single payment.

Get more information on debt management at http://www.debtconsolidation247.co.uk/debt_management_plan.html

Source: http://www.briefingwire.com/pr/manage-overtime-payments-with-debt-management

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