Frequently Asked Questions

What is a Easy Repayment Plan?

  • An Easy Repayment (ERP) consolidates all your debts in to ONE affordable monthly or weekly payment without further borrowing. This allows you to get out of debt by making repayments you can realistically afford.
  • ERP is an informal arrangement between you and your creditors, negotiated by us on your behalf.
  • We take details of your debts, income and outgoings, and provide proof to your creditors that you can't afford current repayments.
  • You make one affordable payment to us, which we distribute to your creditors. Typically, the new payment is half your existing payments, but will depend upon individual circumstances.
  • We attempt to freeze all interests and charges made by your creditors. Meaning you only end up paying back what you owe.
Ques1. Can I increase payments to clear the debt more quickly once my financial situation is stable?
Ans. YES, Clients are always welcome to make larger installments, allowing the debt to be cleared at a faster rate, Also, full and final settlements can be made on the accounts at any point during the repayment plan.
Ques2. Will this affect my credit rating?
Ans. As you maybe already experiencing financial difficulties, it is likely that the credit companies have, or at some point will register adverse findings with credit reference agencies. The Repayment Management Plan is designed to ensure your creditors are paid on a regular monthly basis and in the long term will help any bad credit to be deemed as satisfied.
Ques3. By how much can you reduce my monthly repayments?
Ans. The monthly repayment is tailored entirely to your individual needs. It is based specifically around your affordability
Ques4. My Creditors threaten to take me to court?
Ans. Creditors will only usually threaten court action if they have been unable to get any response from you regarding an outstanding debt. As an ERP client you can be sure that regular contact is maintained with your creditors informing them fully regarding what particular stage we have reached with your case and when they are likely to receive payment. This means that court action is unlikely.
Ques5. Do I need to open a new bank account?
Ans. You can open an account with any bank that you don't owe money to. You need to tell them that all you require is a basic bank account that you can pay money into and set up direct debits or standing orders for bill payments. You do not require an overdraft or chequebook or cheque card but do need cash card for ATM cash withdrawals.
Ques6. I have an existing County Court Judgement registered against me?
Ans. You must continue to make payments as agreed with the court. We will make an allowance for any payments you make by including them in your regular expenditures.
Ques7. How Do I know that my creditors are being paid?
Ans. As the creditors are paid on a monthly basis, you will receive a receipt confirming the individual amounts paid to them.
   

 

 PROS CONS
IVA Write off as much as 60-70% of your debts.

Be clear of the debts included in arrangements after 5 years.

Fees are incorporated into the monthly contributions agreed with your creditors.		 You cannot get credit for the length of the IVA.

Your credit rating with be affected for another year after the IVA is complete.

Homeowners may have to re-value their homes in the 4th year and release equity to cover debts if the value has increased
RMP Your monthly repayments have been
reduced.

You may be able to freeze interest on your
debts.		 Your debts will not be reduced.

You may be paying your debts off for a longer
period of time.

Interest may grow if your creditors do not agree to freeze it.
RE-MORTGAGE Your mortgage and other debts will be combined into one affordable payment amount.

Interest costs on a re-mortgage may be much lower then those you pay on credit cards or other loan.		 You risk losing your home if you do not keep up repayments.
CONSOLIDATION
LOAN		 Your monthly payments will be reduced. If your debts have very high interest, it may even reduce your overall debt. Your debts will run over a longer period
of time.

Your will have less flexibility to negotiate your payments again if your circumstances change.
 
 

We will try to get interest rates frozen but cannot guarantee it.
Getting into Debt Management may decrease your repayment but increase of tenure of repayment
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Company Registration Number: 06798021 England & Wales.        Licenced credit brokers: 0625540