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Debt Management FAQ's

Debt Management – FAQs if your query is not answered here, please call on 0800 583 2020 for free advice


How much will I have to pay ?
On our advice, you decide on a single affordable monthly payment.

Can you guarantee a reduction in payments ?
No. It depends on your ability to make your current repayment and is at the discretion of the individual creditor.

How do I know I'm getting the best advice ?
If your circumstances are not best served by debt management, we will advise accordingly. We are able to do this because we offer the full range of debt solutions.

How long will I end up paying for and will my debts increase?
The period of the debt management plan will depend on how much you are paying each month. For example if your payment is £300 and your debts are £12,000, assuming creditors don't charge interest, your debt could be clear in 40 months.
Your debts could increase if the amount you are paying does not clear the interest charged by the creditor. The debt management company will ask for interest to be frozen but this may not happen.

How do I know my debts are being paid ?
Once up to date balances from your creditors have been received, your monthly payments between them are proportioned based on how much each is owed. A statement showing how much each creditor will receive will be issued. This remains fixed unless your circumstances change. You will be issued a quarterly statement showing all transactions on your account. In addition to this, you will still receive statements from your creditors.

Will this affect my credit rating ?
When entering into a debt management agreement, you will be breaking the terms of your initial repayment agreement with your lender. This may have an adverse effect on your credit record. Due to time required arranging and distributing payments to creditors and delays in making first payment into the programme from clients, contractual payments to creditors may be missed.

How is the programme administered ?
Negotiations are made with your creditors to reduce your monthly payments. They are requested to freeze or reduce their monthly interest charges. A single monthly payment is taken form yourself and paid your creditors on your behalf. This will make managing payments simpler.
 
Is This a Loan?
No, debt management companies offer managed repayment plans not consolidation loans. They work out an affordable monthly repayment based on your income and expenditure and then submit an offer to your creditors based on the pro-rata payment scheme.

Does debt management cover all debts?
No, only unsecured debts. If you have secured debts such as hire purchase or a mortgage you must maintain your payments otherwise the secured creditors may be able to take action to repossess the assets covered by the security.



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