How long will the debt management plan last?
It will usually end when all debts have been paid in full. Due to the reduced payment levels, this could be longer than the terms of the original credit agreements and may incur additional interest being charged as the term of the credit agreement will have been extended.
How much will I have to pay into my debt management plan?
This depends on your net disposable income which is based on your income and expenditure. We work out an affordable monthly or weekly payment that you can make. It is important to keep up with your regular payments, or your creditors may cancel the agreements we have negotiated on your behalf.
How do I know my debts are being paid?
Each month we will send you a statement which will show a breakdown of all the payments we have sent to your creditors. In addition to this you will receive statements from your creditors as normal.
How is my money held until it is distributed to my creditors?
We hold all monies sent to us for distribution to creditors in a client trust account with our bank. This means that your money is completely protected, even in the event of our insolvency. No interest accrues on this account.
What type of debts can go into a DMP?
A DMP deals with unsecured debts, such as bank loans, credit cards, store cards and overdrafts.
What type of debts cannot go into an DMP?
A DMP cannot deal with secured debts, such as Mortgages, Secured loans and Hire Purchase agreements (other than sometimes arrears).
Will my creditors accept my debt management plan?
Creditors do not have to accept a debt management plan put to them, but most are willing to if we show it is beneficial to both parties. There is no guarantee that existing or threatened proceedings against you will be suspended or withdrawn. Creditors may also continue to issue default notices and add additional charges to your debt. Please be assured that we will try our best to discuss your situation with your creditors and encourage them to freeze all interest and charges on your debt.
Will the debt management plan affect my credit rating?
Yes as entering into a plan will result in you not making the contracted repayments on your unsecured debts, so you should expect that your credit rating will be adversely affected. However, your credit rating may already be poor if you have arrears or a history of missed or late payments.
How much are your fees?
For a detailed explanation about this – please see our fees section.
How are the fees collected?
We distribute money to your creditors within 5 working days of receiving your monthly payment which has been cleared through your bank account to ours (cleared funds). Every time we make a distribution to your creditors on your behalf, we deduct our fee for that distribution. If we do not make a distribution, we do not take our fee.
Will I incur any further charges if I cancel my plan?
No, you can cancel with us at any time without any further charge.
Do I have to tell my partner or family?
If you wish, you only have to tell your partner or family if you have shared debts and/or you need your partner’s/family’s income to be taken into account to support the plan.
What if my personal circumstances change?
Because a Debt Management Plan is an informal arrangement, it is easy to vary or change if your circumstances change. You may also replace it with an alternative arrangement (like an IVA) if that becomes more appropriate at a later date.
Do I have to be in full time employment?
No, to be accepted onto a debt management plan all you need is enough disposable income to make an acceptable repayment to your creditors after we have taken all of your income and essential expenditure into consideration.
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