We will apportion any payments received from you for distribution between your creditors based on how much each is owed. We will issue a statement showing how much each creditor will receive. This remains fixed unless your circumstances change. We will also issue a quarterly statement showing all transactions on your account. In addition to this, you will still receive your statements from your creditors. We distribute funds within a week of them clearing.
Yes. You can even use the plan to make payments against any existing CCJs that you have. Just make sure that we know exactly what your current situation is when you talk to us before coming on plan.
Because you are making reduced payments on your debts, it will take longer for your debts to be paid off. As part of our initial consultation with you, we will provide you with an estimate of the likely time you will be on plan. Please understand that a Debt Management Plan is not an overnight solution, for further information please call Debts Management free on 0808 131 9112.
The amount that you will have to pay for your Debts Management Plan is dependant on how much you owe your creditors and what your other outgoings are.
The best way to find out if you are eligible for a debt management plan is to call our expert debt advisors on 0808 131 9112. Alternatively take the Debts Test to see your options.
Here are some of the basic debt management criteria, as used by Debts Management:
Secured debt works against the assets that you own, so if you fail to keep up on repayments then these may be at risk. Unsecured debt includes credit cards, store cards and personal loans.
Yes, as you will be breaking the original terms and agreements with your creditors. But if you have been missing your monthly payments or have defaults against you then you will already have a poor credit rating.
There is no public record of a Debts Management Plan, so it is up to you who you choose to tell.
No, a Debts Management Plan is a way of consolidating your repayments into one affordable payment without any further borrowing.
If you find yourself in a situation where you are able to pay off more than you were previously, then we will be able to replace it with an alternative debts management arrangement.
A Debts Management Plan is able to include most of your debts, but there are those which cannot be included. These are called “priority debts”, meaning that if they are not paid then there will be serious consequences. If you have any questions about whether a debt can be included in your plan then please call our advisors free on 0808 131 9112.
If you feel as though you can not afford your monthly payments then you need to get in touch. As a Debts Management Plan is an informal agreement with your creditors your plan can be changed to suit your circumstances.
No, as a Debt Management Plan does not involve lending you any money, we will not need to credit check you.
Yes, you will be able to keep your current bank account. Although if you owe money to the company that you bank with, then it is often advised that you move bank accounts first.
Yes, chances are that you will be paying your debt off over a longer period of time. However it is important to remember that you will no longer to struggling on a month to month basis.
Creditors are sometimes willing to freeze any additional interest and charges on your debt, but this cannot be guaranteed.
As long as you can afford to make a monthly payment to your debt, then it does not matter about your residential or employment status.
No, a debts management plan requires you to repay your debt in full. However lower monthly payments make it more manageable for you. An IVA is Government legislation that can write off your unaffordable debt, see our IVA page for more information or call our advisors on 0808 131 9112.
This might happen whilst your debts management plan is being set up, but any letters and phone calls can be directed to us and we will deal with them on your behalf.