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Personal Debt Solutions - Debt Management

Debt Management is an informal plan which allows you to repay your debts in one affordable monthly payment and is a service which offers a solution to your financial difficulties. The Debt Advisor, has been approved by the Approvals Committee headed up by Insolvency Service to undertake protocol compliant debt management plans (P-DMP).    

  

Debt Management can provide great relief if:

There a number of benefits to the Protocol Compliant Debt Management Plan which is aimed at getting your debt free quicker. These are:

Protocol compliant companies such as ourselves will be independently monitored every year to demonstrate compliance with regulation and protocol.

How will a P-DMP help me?

A Protocol Compliant Debt Management Plan could be the right solution for you if you can demonstrate that you are able to repay your debts in 10 years or less. If it is likely to take longer than 10 years and your circumstances are unlikely to improve sufficiently over the 10 year term to allow you to repay your debt, there are other solutions such as an Individual Voluntary Arrangement “IVA” which is usually a 5 year payment plan which offers debt write off if you clearly cannot pay your debts in full and you are able to stick to the plan.

How does a P-DMP work?

The plan can be set up relatively quickly. We will carry out a detailed review of your income and expenditure and your debts to ensure the P-DMP is the most appropriate solution. The initial review will identify a monthly contribution that you appear to be able to afford. We will go through a consultation with you which will cover how a P-DMP works, how long it will take to clear your debts and what costs we will charge for administering your plan.

We will then send you a Consent Pack which includes a fact find completed with the information you have given us. We will ask you to supply any missing information, plus evidence of your debts plus evidence of income including salary slips, bank statements, etc. The pack also includes the terms and conditions of the P-DMP, how long it will take to clear your debts, an estimate of our costs plus your rights to cancel. The pack includes Frequently Asked Questions which cover such issues as – what obligations creditors have to accept your plan, what happens if you miss a payment, how you are kept up to date with progress and what services we provide for the fees charged.

Are there any disadvantages to P-DMP's? 

Creditors are not obliged to accept the terms of the payment programme and if they do not, it may cost more and take longer for you to repay your creditors in full due to the possibility of additional fees and charges.

Entering into a payment programme may affect your credit rating and you may experience difficulty obtaining credit in the short and medium and long term.

Delayed or missed payments will cause you to go further into arrears with your creditors and may lead to your debts increasing and creditors taking further action to recover the sums owed to them.

Creditors should accept protocol-compliant DMP proposals unless they have (or are aware of) information that might materially impact the suitability of the proposal. Any costs associated with this could be added to your debt.

What is the cost?

During the first 6 months of your plan we do not charge an administration fee. The fee we charge covers the work we undertake to set up your plan. This includes drafting your debt management plan, sending this out to creditors, liaising with creditors to gain their acceptance to the plan, dealing with creditors’ queries and monitoring the plan in the first 6 months. The fee we charge to cover these services is calculated at 3 times your monthly payment, which is paid equally over the first 6 months of the plan, subject to an upper limit of £1,500.00. Creditors will receive a reduced payment during this time (not less than 50% of your monthly payment). You may go in to arrears or further arrears during this time but these will be included in your plan.

Once the set up fee has been collected, from your 7th monthly payment we will retain management fees. We will retain 17.5% of your monthly payment, subject to a minimum of £25.00 if your monthly payment is £99.99 or less and a minimum of £30.00 if your monthly payment is £100.00 or more. Our maximum management fee is capped at £100.00.