Frequently Asked Questions

What is a Debt Management Plan?

Debt Management Plan (DMP) consolidates all your debts in to ONE affordable monthly or weekly payment without further borrowing.
Debt Management Plan 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.

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.	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
Ques3.	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.
Ques4.	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.
Ques5.	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
Individual Voluntary Arrangement	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
Debt Management Plan	Your monthly repayments have been reduced. You may be able to freeze interest on your debts.	Creditors are not obliged to freeze interest charges. They may freeze interest for a limited period of time or charge interest at a reduced rate. This means that it is possible for the total debt to increase, particularly if your monthly payment is very low Creditors can go to court and obtain a County Court Judgement, bankruptcy petition or attachment on property-equity etc in respect of a particular debt Creditors may still issue a default notice which will show on your credit file Creditors do not have to accept your offer of reduced payments. If they do accept they are entitled to review your situation at anytime You will pay your creditors in full over a longer period than the initial agreed term You may be required to pay greater contributions as time goes by ( e.g. if you get a pay rise) The term of the arrangement is not fixed
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.

Why not complete a Debt Management Budget Form
today to see if you could benefit from our Help

We will try to get interest charges on your debts frozen. However, creditors do not have to agree to freezing interest and charges. Entering into a debt management plan may reduce your monthly repayments but the total sum to be repaid will probably increase. The repayment period will also increase and there is a possibility of additional fees being charged

Company Registration Number: 06798021 England & Wales. Licenced credit brokers: 0625540