We've put together a list of questions we frequently get asked by intermediaries
about debt management plans. If you can't find the answer you're looking for, please
give us a call on
0845 60 60 661.
What is a debt management plan?
If you have a client who is struggling to meet their monthly repayments, a debt management plan could be the answer. It is an informal agreement which we set up with your client’s creditors and means your client will pay a single monthly repayment to us which we then distribute amongst their creditors until debts are cleared.
The main benefit is that we can normally negotiate reduced monthly repayments and/or a freeze on interest, but this is not guaranteed. We’ll also handle any creditor letters and enquiries, easing the pressure on your client.
Does a debt management plan cover all debts?
No, only unsecured debts.
Will my client be credit checked?
Because a debt management plan is not a loan, your client will not be credit checked.
Will my client be charged for a debt management plan?
Yes, we will retain the first two payments that your client makes (subject to a maximum of £500 per month) as an initial set up fee. Following that, your client will be charged a monthly administration fee which will be equal to 15% of their monthly contribution.
Can my client change the amount they pay throughout the life of the plan?
Payments can be raised or lowered should your client's circumstances change.
Does it make a difference if my client is a homeowner?
It makes no difference whether your client owns their own home or not.
What are my next steps?
If you think your client may benefit from a debt management plan, call our team on 0845 60 60 661 who would be happy to discuss any cases with you.
