Debt Management Plan FAQs
- How much does a Debt Management Plan cost?
- What happens to my house?
- Will my creditors still contact me?
- How long will the debt management plan last?
- What is a debt management plan?
- How will my creditors know I’ve got a debt management plan?
How much does a Debt Management Plan cost?
Debt Management Plans can be free to set up however, some debt management companies do charge, so have a look around. Some companies charge a one off set up fee, others charge a monthly percentage of the money you pay into the plan.
We hope that this answers your question; “How much does a Debt Management Plan cost?” If you require any further information please do not hesitate to call one of our advisors on 08000 915004. 
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Will my creditors still contact me?
Unfortunately as debt management is not a legally binding contract your creditors are still within their right to contact you through letters and telephone calls. The debt management company dealing with your case should contact your creditors and inform them to send all correspondence to them; this will not happen over night and it can not be guaranteed that it will stop completely.
We hope that this answers your question; “Will my creditors still contact me?” If you require any further information please do not hesitate to call one of our advisors on 08000 915004. Back to top
What happens to my house?
Nothing will happen to your property providing you maintain your mortgage payments. In your income and expenditure budget, an allowance will be made for you to make payments for your rent or mortgage.
Aggrieved creditors may decide to pursue a charging order against your home, which secures their debt. This is less likely to happen if you start the process as early as possible and offer a realistic repayment that you can sustain. You should take formal advice if you receive notice that your creditors intend to do this.
We hope that this answers your question; “What happens to my house?” If you require any further information please do not hesitate to call one of our advisors on 08000 915004. Back to top
How long will the debt management plan last?
The length of the debt management plan depends on each individual situation, as everyone owes a different amount back to their creditors and can afford to pay back different amounts each month. When initially discussing your plan, ask the advisor what monthly payments they are suggesting and how long it will take to pay back your creditors if you paid this amount.
We hope that this answers your question; “How long will the debt management plan last?” If you require any further information please do not hesitate to call one of our advisors on 08000 915004. Back to top
What is a debt management plan?
A Debt Management Plan is an informal agreement that is arranged on your behalf with your creditors to reduce your monthly debt payments. Normally you are still obliged to pay your debt in full, so reducing your monthly payments may increase your length of repayment.
There is no guarantee that the interest and charges will be stopped therefore your debt may continue to increase. It is important that you work with a debt management company who will act on your behalf to negotiate this, as well as making sure that you do not receive direct demands for payment.
Generally, debt management is suited to those with fairly low levels of debt. It offers a short term solution for people needing some time to get back on their feet or those struggling to manage their debt appropriately.
We hope that this answers your question; “What is a debt management plan?” If you require any further information please do not hesitate to call one of our advisors on 08000 915004. Back to top
How will my creditors know I’ve got a debt management plan?
Your debt management company will inform your creditors of your situation and that you are in a debt management plan. They will provide them with the income and expenditure statement that you have completed and make an offer to them for the amount you are going to repay each month
We hope that this answers your question; “How will my creditors know I’ve got a debt management plan?. If you require any further information please do not hesitate to call one of our advisors on 08000 915004. Back to top