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.
An IVA normally lasts for 60 months. But there are times when it is possible to complete an IVA in a shorter time, if applicable you should discuss it with your Insolvency Practitioner.
An IVA is a legally binding contract between you and your creditors, and to see if you qualify for an IVA, you need to seek expert advice. Telephone Debts Management on 0808 131 9112 for more information.
Here are the basic IVA criteria as used by Debts Management:
When you have completed your IVA, you will receive a "Statement of Completion", normally within three months of the final payment. The Insolvency Service will also receive a copy of this for their records.
75% of your creditors, in terms of debt value, must agree to your IVA proposal in order for it to be accepted. Even if the other 25% reject your proposal, it will still be legally binding to them.
If you feel as though you may miss IVA payments or that they are not affordable to you, you need to get in touch with your Insolvency Practitioner straight away. Failure to make payments on time can lead to bankruptcy proceedings.
An IVA is a legally procedure, and before you can enter into an IVA your creditors must accept your proposal. Your proposal will be based on how much you can afford to pay your creditors after all living expenses have been deducted, in return they will clear off your unaffordable debt at the end of this period.
When your IVA goes through, you will have to give up your current credit which means that you cannot have any credit cards, store cards or personal loans. You will also not be allowed to take out any further credit during your IVA term.
The IVA proposal will be through your Insolvency Practitioner, they will prepare your proposal and hold a meeting with creditors. When your creditors vote in favour of the IVA it will become legally binding to them and to you. After this has happened, all you need to do is make sure that you continue to make the monthly payments.
An IVA can only include your unsecured debts, which includes credit cards, store cards and personal loans. Other debts cannot be included in your IVA proposal so it is important that you keep up to date with these. Examples of debts which cannot be included in your IVA include your mortgage, car hire purchase and student loan company debts.
The amount that you will need to pay your creditors is based on your individual circumstances. During the IVA proposal your Insolvency Practitioner will go through your finances and help you to decide an amount that you can afford to repay. Your creditors choose to accept or reject your proposal during the Meeting of Creditors.
A secured loan is a loan which is secured against your assets, this is most commonly your home. The benefits of a secured loan over an unsecured loan is that you can borrow larger amounts over a longer period of time, and with better interest rates.
Most of our clients have chosen a secured loan for debt consolidation purposes. The new loan will pay off your existing unsecured debt and replace it with one loan. But we will not place any restrictions on what you can or cannot do with your loan.
A remortgage means that you are getting a new mortgage deal without moving home. The new mortgage will pay off your old one as well as release equity which you might use to repay unsecured debt.
Just because you have a poor credit history does not mean that you will be unable to get accepted for a loan. Even if you have been turned down in the past we can help you get accepted for a loan to improve your financial difficulties.
To apply for one of our secured lending options you need to speak with one of our expert loan advisors. To do so please feel free to call on 0808 131 9112 or fill in the Quick Enquiry form.