Your Questions Answered
- Q: How much will I have to pay into my debt management programme?
A: It depends on your net disposable income which is based on your earnings and expenditure. We work out an affordable monthly or weekly payment that you can make. It is important to keep up with your regular monthly payments.
- Q: Is this a loan?
A: No. We manage your debts on your behalf. You pay us one monthly affordable payment and we pay your creditors reduced payments. This allows you to repay your creditors at a monthly rate that you can afford.
- Q: Will I still be able to afford my everyday expenses if I enter into a Debt Management Plan?
A: Yes – within reason. As part of the process of entering into a Debt Management Plan, we help you identify what is “essential expenditure” – daily and monthly. For example, based on your income, an agreed amount will be proposed to your creditors to enable you to budget for monthly costs of food, mortgage/rent, etc – these are considered essential living expenditure and your creditors do understand that based on your income, a certain amount of money must be put aside for you to still be able to afford these everyday costs.
- Q: Does it make a difference if I am a home owner or tenant?
A: No. It makes no difference whether you are a tenant or homeowner or even if you are still living with your parents.
- Q: At the moment, I am struggling to juggle the number of creditors I have and the number of different payments I owe – how will a Debt Management Plan help me with this?
A: By entering into a Debt Management Plan with us, we will take one monthly payment from you and distribute it evenly amongst your creditors at a repayment rate agreed with them.
- Q: Do I have to be in full time employment?
A: No. To be accepted onto a debt management plan, you only need to have a surplus of income above what you need to live on.
- Q: My bank says they will not deal with you and will take me to court if I use you. What do I do?
A: A creditor cannot refuse payments from a debt management company and then take you to court for non-payment. Some credit companies may prefer not to deal with us so they can apply more pressure on you, however you have a legal right to allow anyone you wish to deal with your finances.
- Q: Will my creditors still charge interest on the debt owed to them?
A: We can’t guarantee that your creditors will cease charging interest on your debt, but in most cases, they do acknowledge the fact that you’ve chosen to enter into a Debt Management Plan and agree to freeze any further interest. Due to the long standing relationship we have with most creditors, we are able to do this for our clients, but are unable to guarantee this for you.
We provide a Personal Advisor, who will talk to your creditors on your behalf and turn your debts into one affordable monthly payment. Our advisors are real people who understand your needs and always act in a professional manner when dealing with you and your creditors.