Debt management - FAQ’s
Will the I be taking out a new loan to clear my debts?
No. A debt management plan is a scheme to help you make affordable payments to
your existing creditors. Your debt management provider cannot provide clients with a
loan.
Who will look after the my account?
Once you have has made your first payment, you will be allocated your own 'Personal
Debt Advisor' (PDA). Your PDA will be your main point of contact and will be there to
help you for the life of the debt management plan.
Will you be dealing with every company the I owe money to?
No. Some of your debts may be regarded as 'priority' debts due to serious
consequences if payments are not made. An example may be mortgages or utility
payments. These will be taken into consideration when calculating what funds are
available to distribute to your other lenders It is very important that you continue to
pay these priority debts in full.
Will my creditors/lenders definitely accept the proposed plan?
Creditors and lenders do not have to accept debt management proposals, but most are
willing to accept them if is beneficial and agreeable to all parties. There is no
guarantee that existing or threatened proceedings will be suspended or withdrawn.
Your creditors may also continue to issue default notices and add additional costs to
the debt. You can rest assured that your debt management provider will do all they can
to ensure your creditors understand the difficulties you are in and ensure the best
possible outcome.
Will I have to pay over a longer term due to the reduced payments involved?
This is possible. However, the monthly payments will be affordable. In addition to this,
every effort will be made to encourage your creditors to freeze interest and other
charges to ensure the debt reduces as quickly as possible. Should your circumstances
improve; the plan can be amended to speed things up. If creditors refuse to freeze
interest, paying the same debt over a longer period of time will increase the total
amount paid.
Why do debt management providers charge fees?
You pay for a professional, personal service with the skill, expertise and experience of
dealing with the finance industry. This ultimately provides you with peace of mind that
your creditors are regularly being paid at an amount that you can afford.
When will the debt management plan be reviewed?
Plans are reviewed every six months and any changes in your circumstances are taken
into account . If your situation changes, you should contact your debt management
provider immediately. If your situation has deteriorated a new, more affordable
repayment plan will be sent to your creditors for consideration.
How long will the debt management plan last?
A plan is tailored to individual financial circumstances. The repayment period of the
debt may be longer as you are usually paying a smaller, more affordable single
payment. A higher monthly contribution will reduce the term of the debt management
plan.
To find the best solution for you Contact Simply Debt Solutions or Send Your Details to
The Debt Advisor today.
Working with The Debt Advisor Ltd
