Deep Dive

Incredible vs. Debt Management Plan: Which one is the best?

January 16, 2024

With so many different tools and apps on the market, and different money management methods to contend with, knowing which ones are right for you can be overwhelming. If you’re currently tackling debt and wondering what role Incredible might play in your financial toolkit, then read on. Find out how the Incredible debt management app compares to a debt management plan. 

What is a debt management plan? 

A debt management plan (DMP) is an informal agreement put into place where you pay back your debt at a rate that you can afford and in a priority order defined by the DMP provider. You’ll make one monthly payment to your DMP provider - regardless of how many creditors you have - and they’ll pay your creditors for you. Some DMP providers charge for their services so make sure to check this before committing. Being part of a DMP can also impact your credit rating.

How is Incredible different?

Incredible is like a personal concierge, you still have all your debts, and responsibilities, with the respective lenders but Incredible brings them together so there’s a single interface to interact with them all from tracking how long they’ll take to pay off seeing how much interest you’re going to pay. You can even make payments directly to them, all from the app and Incredible’s smart technology ensures your payment are being allocated to your credit cards in the most cost-effective manner. 

What are the benefits of a debt management plan?

  1. Debt management plan providers take the overwhelm out of your debt-free journey; they can help you to manage your debt repayments and negotiate with your creditors for you. This can include creditors freezing any interest charges (it’s worth noting that creditors aren’t obligated to do so.) 

  1. People who have debt management plans often say that it makes them foster a positive money mindset because they are making one monthly payment to their provider. Not only does the debt repayment process feel so much more manageable, it also simplifies the process and gives you better control over your finances.

  1. There are different debt management plan providers to choose from, which means you’re not limited to one provider. You can take the time to research and find the provider that works best for you. 

What are the main benefits of using Incredible to manage your debt?

  1. With Incredible, you can start your debt-free journey within minutes - there’s no application process, no need to make a phone call or wait to see whether you meet the eligibility requirements. This is a huge bonus especially if you’re anything like me and tend to procrastinate when it comes to adding new financial products into your arsenal. I love that the barrier has been taken away. 

  1. Incredible simplifies the important stuff about your debts. It brings all your debts together under one roof, and it helps you do things like understand the impact on time and interest that changing your repayment could have. While many of us might think that paying an extra £10 to our debt each month might not be worth the time and effort, Incredible shows how much of an impact this can have over a longer period of time, demonstrating how every penny really does count!

  1. A lot of us are familiar with the round-up features that many bank apps offer; Incredible has taken this loved feature and made it possible for you to direct your spare change to somewhere truly valuable and guaranteed to benefit you, paying down your debt. While those few pennies here and there might not seem like much, it most definitely adds up. In case we needed further proof that we can enjoy the things we love and pay off debt at the same time, I think this is it!

  1. Finally, all the information you need is at your fingertips. Just as I recommend checking your bank balances regularly, the same applies to debt. Being able to see the numbers go down is a significant motivator especially if one of your priorities is clearing your debt. 

Which one is best?

This will depend on each individual and their preference. If you prefer to go with a digital method that helps you to repay your debt most efficiently and at your fingertips then Incredible might be the best option for you. Incredible is jam-packed with innovative features that help you gain a better understanding of your debt and financial picture. Whatever you decide, weighing up the pros and cons of all financial products available to you can help you make more informed decisions.