If your financial circumstances change, for the better or worse, then it is best that you speak with your case handler who will be able to advise you on what to do next.
Yes, you will be able to get a Debt Management Plan if you have any existing CCJ’s or have other adverse credit problems.
A Debt Management Plan is not a legal agreement, which means that creditors do not have to accept it. However, we will do our best to try and negotiate with them, on your behalf.
Yes, your credit rating will be damaged as you are breaking the terms and conditions of your initial repayment agreement with your creditors. However, if you are currently failing to make your minimum monthly payments then your credit rating will already be damaged.
If you fail to make your monthly payments, it is likely that your creditors will no longer wish to continue to support you on your plan and may withdraw their help.
If you are struggling to make your payment, then it is important that you talk to your case handler who will advise you.
Your first month’s payment will go towards the implementation costs and negotiating with your creditors. Then there is an ongoing administration cost which is included in your monthly payment.
This is dependant on the amount that you owe to your creditors. As you will have to continue to make payments until all your debts have been fully repaid.
The monthly amount that you need to pay for your Debt Management Plan is dependant on your circumstances.
You should always pay this monthly amount, as failure to do so might mean that your creditors will cancel this agreement. That is why we work with you to make a tailor made payment plan which is based on your earnings and expenditure.
For a Debt Management Plan, it does not matter about your residential status. All you need is a regular income.
This is possible, but it is important to remember that instead of struggling with your debts now, you will be paying a smaller monthly payment. Also, your creditors may freeze interest and other charges on your account so that you are able to pay back your debt more quickly.
There are debts which cannot be included in a Debt Management Plan. These are called “priority debts”, meaning that if they are not paid then there will be serious consequences, such as not paying your mortgage could result in your house being repossessed.
No, a Debt Management Plan is not a loan as you do no borrow any money from us. It is a way of consolidating all of your repayments into one affordable cost.
Your monthly payments to each creditor will be based on how much each one is owed.
You will receive a statement showing how much each creditor will be issued, and from then on you will receive a quarterly statement showing all the transactions that have been made from us.
No, as we don't lend you any money for a Debt Management Plan, it means that we do not have to check your credit rating score.