Debt Management FAQ
- What Is Debt Management / Debt Counseling?
- Can I Borrow More Money From You To Pay Off My Debts?
- Will I need to inform my creditors that I am on a financial management programme?
- Who can I contact if I have any questions concerning my finances?
- By how much will my monthly repayments be reduced?
- Will My Payment Remain The Same Throughout The Debt Management Plan?
- What happens if I start to struggle with the restructured payments?
- What will happen if I fail to keep up payments on the Trust Deed?
- Will this affect my credit rating?
- What is your cancellation/cooling off period?
- What happens if a creditor contacts me directly?
- What happens if I want to stop my finances being under management?
- How do I begin my debt management programme?
Debt management is designed to help people reduce their repayments back to their creditors. This is achieved by spreading your payments over a longer period of time, thus making them more manageable. Your debts are re-structured into one affordable monthly payment. Levels of payment are agreed with your creditors and paid on your behalf.
We do not pay off your debts for you in the form of ‘another’ loan. Our financial management plan allows you to pay off your debts at an affordable rate.
No, once we have all your latest account information and statements we will be able to deal with your creditors directly for you. We will contact your creditors and verify with them that the information you have given us is correct and from that point they will be aware that your finances are now under management.
Each of our clients will have their own designated Personal Account Manager. Whenever you have any questions you will be able to discuss matters with them personally. You will be appointed with your own personal account manager once you have made the initial payment to start off your debt management programme.
Your monthly repayment will be tailored entirely to your individual needs. It is based solely around how much you can afford, or your disposable income.
The payment plan is flexible depending on your disposable income and your current position in relation to your finances. Your circumstances may change from time to time and you may have to reduce the payments. Or, your financial position may improve so you can increase the payments to reduce the outstanding debt that you owe, thus clearing your debt off quicker.
If you encounter a change in your personal circumstances and you find that your monthly repayment becomes too costly for you, we can reduce it further, dependant on your circumstances.
You will receive a fully itemised statement each month. This will clearly itemise your monthly payment and how much each creditor has been paid on your behalf. You will normally continue to receive statements from your creditors as well.
If you are currently experiencing debt problems it is a possibility that one or more of your creditors may record information with credit reference agencies such as Equifax or Experian, usually in relation to any missed payments. Details may already be on your credit file if you are, or ever have been behind with your payments.
You have a cancellation right which is sent out in the written information sent to you. You are also entitled to a ‘cooling off’ period, which ends seven working days after you receive your contract documents. If you change your mind during this cooling off period any monies paid will be returned to you with no charge being made.
Forward all correspondence onto us from your creditors. Any calls or letters that you would normally receive off your creditors will usually cease once a regular payment system has been established.
If you chose to stop your financial management programme you could lose all of the advantages the program provides, including a single monthly payment, lowering or eliminating interest, lowering your total monthly payments and avoiding unpleasant collection calls.
As soon as you submit our on-line application form, one of our Personal Account Managers will call you back to discuss your case in more depth. Alternatively, if you cannot be reached by phone we will send you all of the relevant paperwork together with a covering letter. The pack will explain what you should do next.