Are you confused about debt help? All you need to know about debt management…
What is a debt management plan?
A debt management plan is an informal agreement between debtor and creditor designed for people who are struggling to meet there monthly payments
Is a Debt Management Plan a loan?
No, a debt management plan isn't a loan and therefore no credit checks will be required.
Will my creditors still send letters and call me?
It is more than likely that you will still hear from your creditors, this is due to the management plan being an informal agreement and not legally binding. Volume of letters and phone calls are lilkely to decrease the longer the plan runs as the creditors will realise they are receiving their monies.
Can i vary my payments to suit my circumstances?
Due to the plan being an informal agreement you can raise or lower your payments to suit your circumstances.
Do i need to cancel my direct debits?
You will need to cancel your direct debits to creditors to prevent duplicate payments. Make sure you still pay household bills, car insurance etc.
Will this affect my credit rating?
Your credit rating will be affected due to you not meeting your contracted repayments.
Do creditors have to accept payments under a debt management plan?
Creditors don't have to accept payments under the plan or any payment under the contracted amount. However, they are normally prepared to accept payments that are deemed reasonable.