Frequently Asked Questions
Debt Management Plan
Will my lenders freeze the interest to make the debt management plan attractive?
Again this depends. Some lenders systems will not allow them to freeze interest until you are driven towards a default. At the point of a default they will then freeze the interest. Other lenders are more flexible and if they see the proposal put forward is fair and reasonable they will freeze the interest. This will mean that every penny you pay into your plan will go to reducing your outstanding capital.
Which debts can't be included in a debt management plan?
What is the main benefit of a Debt Management Plan?
How will the plan affect my credit rating?
Will my lenders freeze the interest to make the debt management plan attractive?
What happens if I can't keep up with the reduced payments?
Will my creditors still contact me?
What is a typical time period for a debt management plan?
What is the difference between fee free and fee charging advisers?