Debt FAQs

1. How does debt management effect my credit rating?
If you employ the services of a debt management provider it is not specifically recordered on your credit file. However, If you are making reduced payments by any means this will be recorded and will hinder your ability to get unsecured credit in the future. Defaults and possibly CCJ's are a likely outcome if you do not maintain contractual payments to your creditors.

2. Will my creditors accept the offers?
English law states that unsecured creditors are only entitled to what someone can reasonably afford to pay. We provide all creditors with a comprehensive breakdown of income and expenditure. Creditors are only entitled to your disposable income after all your essentials have been met. This is the amount we distribute on your behalf. Your creditors have to accept the payments we make on your behalf, however, they do not have to enter into an agreement with us. As we make applications to get income/charges frozen your creditors will not accept offers if someone to takes on additional lending. Our plans are designed to get people out of debt and it is against the terms of our agreement if you make credit applications whilst on our plan.

3. Am I contracted for a set amount of time?
A debt management plan is a service that we provide for as long as someone requires it or until the debt is clear. You will be provided, in writing, with an estimated timescale for your plan and a breakdown of the total cost of the service over that period. An IVA is usually over 60 payments.(60 months)

4. How do I know that my creditors have been paid?
Each month you get a receipt and a breakdown of all the payments made on your behalf.  

5.How much support do I get?
A dedicated advisor handles your file.