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 Debt Management FAQs

* Will I be charged if I cancel my debt management plan?

No, you can cancel with us at any time without any further charge. Back to top

* Will the creditors accept my offer of repayment?

Creditors do not have to accept any offer of repayment below the contracted minimum. However it is our experience that mainly they are prepared to accept reduced repayment offers where we are able to demonstrate that the offer we have made is reasonable and that you are committed to repay your debts by use of the plan. 

* Will creditors still chase me in a debt management plan?

Certainly in the short term, your creditors will continue to take action to recover your debts. Do not ignore them. Deal with calls politely, informing creditors that you have appointed Women in Debt to act on your behalf. You should forward any letters to us to deal with on your behalf and advise us of any phone calls you are receiving. Back to top

* Will I get a default notice whilst in a debt management plan?

By coming on plan with us, you will be in default on your original credit agreement and your creditor is therefore entitled to send you a Default Notice. Creditors send out Default Notices to protect their own legal position. 

* Will a debt management plan affect my credit rating?

Because taking out a plan will result in your not making the contractual repayments on your unsecured debts, you should expect that your credit rating will be adversely affected in the short to medium term. However, your credit rating may already be poor if you have arrears or a history of missed or late payments.

* Will a debt management plan stop my creditors taking further action?

We cannot guarantee that your creditors will not take further action, including court action to recover debts from you but, if they do, we will help you respond so that any repayment that is required is within your ability to repay. 

* Can I take out a debt management plan if I have CCJs?

Yes. You can even use the plan to make payments against any existing CCJs that you have. Just make sure that we know exactly what your current situation is when you talk to us before coming on plan. 

* Can I take out a debt management plan if I am a homeowner or a tenant?

No. It makes no difference whether you are a tenant or homeowner or even if you are still living with your parents.

* Do I have to be in employed to have a debt management plan?

No. To come on plan, you only need to have a surplus of income above what you need to live on. 

* Do I have to tell my partner about my debt management plan?

We believe that it is always best to be honest with your partner. However, you only have to tell your partner if you have shared debts and/or you need your partners income to be taken into account to support the plan. 

* Will the payment plan cover all of my debts?

No. A debt management plan can only cover your unsecured debts and arrears. Priority must be given to other types of debts because of the serious consequences of not maintaining regular payments. You must continue to make these payments yourself. Some examples include rent or mortgage, hire purchase agreements, any loan secured against property, council tax and utilities such as gas, electricity and water. When assessing your financial situation, we make suitable allowances for you to be able to afford your priority debts and your day-to-day living costs before we calculate how much you can afford to pay towards your other creditors. 

* Is a debt management plan a type of loan?

No. We neither lend you money nor pay off your debts. Your payment plan is a solution that allows you to repay your creditors at a monthly rate that you can afford. If you do not make payments into the plan, we cannot make payments to your creditors. 

* What is the difference between secured and unsecured debts?

A secured debt is a debt secured against an asset that you own. Typical secured debts will be a mortgage, a secured loan, a car loan, etc. An unsecured loan is any loan not secured on an asset, such as a bank overdraft, a personal loan, a credit card, store card, etc. 

* Will I be credit checked before acceptance?

No. Since we do not lend you any money, we do not need to credit check you. 

* How can I pay my debt management plan?

Once you have made payment for our initial set-up fee and your first months contribution we will make a monthly distribution to your creditors on your behalf and will deduct our fee for that distribution. If we do not make a distribution, we do not take our fee. 

* Where will my money be hold before it is sent to my creditors?

We hold all monies sent to us for distribution to creditors in a client trust account with our bankers. This means that your money is completely protected in the event of our insolvency. 

* How long will I be in a debt management plan?

Because you are making reduced payments on your debts it will take longer for your debts to be paid off. Repaying debt over a longer period may increase the total amount to be repaid. Your ability to obtain credit will be affected in the short term and might be affected in the medium to long term. As part of our initial consultation with you, we will provide you with an estimate of the likely time you will be on plan. Please understand that a Debt Management Plan is not an overnight solution. 

* What fees will I pay in a debt management plan?

We charge an initial set-up fee, which is the first month disposable income and then 15% each month of what you can afford to pay your creditors

* What happens if my circumstances change whilst I am in a debt management plan?

Because a Debt Management Plan is an informal arrangement, it is easy to change it as your personal circumstances change, and even to replace it with an alternative arrangement if that becomes more appropriate at a later date.

If you can't share your problems with your loved ones then share them with us, call NOW on 08448 222 622, or click and fire up our FREE Just-A-Minute Debt Test and we can talk you through the possible solutions to your debt problem or click to download our Debt Enquiry Form

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