Online Debt Help Centre

Q. What is meant by a debt management plan?

A. A debt management plan is an agreement between an individual and a debt management company or his creditors. In this agreement, the individual will consent to pay a reduced amount towards his debts each month. The amount paid each month will be affordable to the individual and the creditors must be in agreement.

Q. What if I owe a lot of money to lots of different sources?

A. We can help you by talking to you to determine what the best course of action would be for your individual circumstances. We may be able to talk to your creditors to arrange lower repayments or to ask them to freeze the interest on your loans. You may also be able to get a consolidation loan which will allow you to pay one affordable payment every month instead of many different payments.

Q. Will I end up paying debts off for longer?

A. Unless your creditors agree to freeze your interest payments you will more than likely end up paying off your debt over a longer period of time. But the amount you are paying each month will be reduced to an affordable amount meaning that you will no longer be struggling to pay off your financial commitments each month. Many of our clients feel that this is a preferable arrangement and are prepared to pay their debt for longer in order to reduce the worry over unpaid debts.

Q. Would I not be better contacting my creditors myself?

A. You can contact your creditors directly if you want but some people feel that it is better to get an independent expert to speak to their creditors for them. We are experienced in negotiating with lenders and we know how to get the best deals for our clients. Also many people do not like having to speak directly to lenders to explain their situation so feel that our service is a better alternative.

Q. How will my credit rating be affected?

A. If you have missed payments then this may already be having a negative impact on your credit rating. That is why it is important to take steps to sort out your financial problems as soon as possible. You need to try to get your finances in order quickly so that you can get your credit rating repaired. Taking steps to pay off your debts will help to improve your credit rating.

Q. What if I change my mind?

A. You are under no obligation to proceed with any of the solutions we advise on. Should you change your mind once a plan has been put into place, you are provided with a cooling off period of 14 days under the Consumer Protection (Distance Selling) Regulations 2000.

Please see our partners Debt Management Terms of Business (PDF) for full details on your right to cancel.

Please note that an IVA is a legally binding arrangement and cannot be cancelled once a meeting of creditors has been accepted. Failure to maintain payments towards your IVA could result in a termination of your IVA.

Q. What if my Protected Trust Deed fails?

A. If you fail to keep up repayments your PTD may fail. As a result your assets may be at risk, and bankruptcy proceedings could start against you. If your circumstances change you should contact your trustee immediately.