Frequently Asked Questions
Debt Management Plan
What is a typical time period for a debt management plan?
If it is practical to freeze interest a time period for a debt management plan could be the total outstanding capital divided by the amount of payments you make. For example if you owed £6,000 to your creditors and were to pay £100 per month you would end up making 60 payments over a five year period.
Alternatively as a debt management plan is an informal arrangement it is possible for you to stop your debt management plan by giving you debt management provider one months notice. In reality Debt Management Plans tend to be used for short term periods of time rather than a final settlement in their own right. This is occurring not least because as the debt is reduced creditors again start charging interest on the outstanding balances. This means you may never be debt free.
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?