What is a Debt Management Plan?

A Debt Management Plan is a single payment made monthly to cover all of your unsecured debts. The payment is split equally between all of your creditors and usually we will arrange for the interest to be frozen or significantly reduced. We use our extensive experience in the industry to negotiate the best repayment for you to ensure a stress free financial future.

Is there a minimum or maximum amount of debt ?

The is no minimum amount of debt to enter into a Debt Management Plan however if you have a large number of creditors and a significant amount of debt there may be alternatives there are more appropriate than a Debt Management Plan. When we conduct our initial assessment we will only recommend the most appropriate solution for your needs.

Do I only make one payment each month ?

Yes. You would payment one monthly instalment as agreed at the beginning of your plan and this will be split between your creditors. We will review your repayment every six months to ensure that it is affordable and that any changes to your financial situation are reflected.

Will I still keep receiving letters and phone calls from my creditors ?

Initially you may receive some correspondence from your creditors but usually once we have contacted them with the offer of repayment and they have received the first instalment the letters and telephone calls will stop.

How do I know that my creditors will accept the reduced payment

We have extensive experience in negotiating reduced payments with creditors. Any offer of payment that is made is supported by an accurate financial statement detailing your income and expenditure so it is highly likely that the offer will be acceptable.

How are payments made each month?

You can pay by standing order or direct debit on a monthly basis.

Will this affect my credit rating ?

Entering into a debt management plan will affect your credit rating however usually once your debts have accumulated to an unmanageable level it can be difficult to maintain your credit rating. Your creditors will however register your debts as satisfied on the credit register once your plan is completed.

What are the alternatives to a Debt Management Plan?

There are other alternative to a Debt Management Plan, a Debt Relief Order, Individual Voluntary Arrangement or a Bankruptcy Order may be more appropriate solutions for your circumstances. We will look at your financial circumstances before making any recommendations.

What happens if a creditor calls me ?

You can advise them that you are working with a professional debt counsellor and that they will receive details within 14 days.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.