Debt Management Plan Questions & Answers
We understand the pressure that financial difficulty can heap on even the strongest individuals, and we also understand that you will want to know all the facts before making a decision on any Debt Management Plan.
That’s why we’ve collated the questions most associated with our services, and answered them all below.
For further information on whether or not one of our plans is the best route for you, visit our debt management advice and costs pages.
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Can I add creditors to my existing Debt Management Plan?
Yes, just contact us to let us know. Adding further creditors will mean you need to increase your monthly payment to ensure your plan remains viable. However, once you’re on a Debt Management Plan you should not be using existing credit facilities, or applying for any more.
For more information, call us on 0800 16 999 46 or simply fill in the online application form above. Call free for expert and completely confidential advice.
Can I still get a County Court Judgement (CCJ) whilst on a Debt Management Plan?
Yes. In theory because your plan is not legally binding, a creditor can still seek a CCJ against you. However, we can assist you by providing you with a document that will prove to the court that you are trying to resolve your debt issues and are already paying what you can afford.
For more information, call us on 0800 16 999 46 or simply fill in the online application form above. Call free for expert and completely confidential advice.
Can I still keep using/applying for credit whilst on a Debt Management Plan?
No, you cannot apply for any further credit and must stop using any existing credit facilities that you may have.
For more information, call us on 0800 16 999 46 or simply fill in the online application form above. Call free for expert and completely confidential advice.
What if my circumstances change?
You will need to contact us if your circumstances change and we will make any necessary changes to your plan. If, for instance, you can afford to increase your monthly payment, the length of your plan is likely to reduce.
For more information, call us on 0800 16 999 46 or simply fill in the online application form above. Call free for expert and completely confidential advice.
What should I do if my creditors continue to contact me or have passed the debt to a collection agency?
Simply inform your creditors that you have entered into a Debt Management Plan with us.
Give them your personal reference number and our telephone number and advise them that we are now dealing with your debts.
For more information, call us on 0800 16 999 46 or simply fill in the online application form above. Call free for expert and completely confidential advice.
Will my credit rating be affected if I agree to a Debt Management Plan?
When you enter into a Debt Management Plan you are breaking the terms of your original credit agreements and this will be noted on your credit file, however if you have missed or made late payments to your creditors, then it is likely that your credit rating is already damaged.
This information will be available to any potential lenders and will affect your ability to obtain credit in the future. Remember though, the fact that you are taking positive steps to clear your debt should help to rebuild your credit rating in the future. Please note that your credit rating will not improve immediately after an outstanding debt is repaid. Information is generally retained on a consumer credit report for 6 years.
For more information, call us on 0800 16 999 46 or simply fill in the online application form above. Call free for expert and completely confidential advice.
Will my creditors accept this arrangement?
Whilst we make every effort to negotiate reduced payment terms and the lowering or freezing of interest on your behalf, your creditors are not obliged to accept.
For more information, call us on 0800 16 999 46 or simply fill in the online application form above. Call free for expert and completely confidential advice.
Will you deal with all my debts in a Debt Management Plan?
We can only deal with your unsecured and non-priority debts within a Debt Management Plan.
These include:
- Personal loans
- Credit cards
- Store cards
- Overdrafts
- Catalogue debts
- Utility / Mobile / Telephone bills (only if the service has been terminated)
You must ensure your priority payments are kept up to date, as well as payments on any debts which cannot be included on your plan. Examples of debts that cannot be included are rent arrears, mortgage or other loans secured on your property, hire purchase secured on a car that you own, utility bills from your current service provider and council tax.
Typically, you will need to make a minimum of three full monthly contracted repayments on any unsecured loan before a creditor will consider accepting a reduced monthly repayment.
For more information, call us on 0800 16 999 46 or simply fill in the online application form above. Call free for expert and completely confidential advice.