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Debt Plan - FAQ
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Frequently Asked Questions (FAQs)
Debt Management - FAQ
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Debt Management – FAQ
How much will I pay each month?
How long will I have to make payments for?
Is a debt management plan another loan?
What if I fail to keep up my monthly repayments?
Will the debt management plan be able to include all of my creditors?
Will my credit rating be damaged by entering into a debt management plan?
Will you need to check my credit history when starting a debt management plan?
Will my creditors definitely accept a debt management plan?
Will I have to pay my debts off over a longer period of time?
Will I be able to get a debt management plan if I have CCJ ’s?
Does it matter if I am a homeowner or tenant, unemployed or working part time?
What if my circumstances change whilst on a debt management plan?
Will a Debt Management Plan pay off my debts?
Do I have to tell anyone that I am on a debt management plan?
How much will I pay each month?
This depends on your current financial position. Debt Solutions will complete a full fact find to determine exactly what you can afford to repay and will help you reach agreement with your creditors which will mean that you can make one affordable payment each month.
How long will I have to make payments for?
The duration of your plan will be determined on your monthly repayment until you have either repaid your debts or your circumstances have sufficiently changed that you are eligible for an alternative solution.
Is a debt management plan another loan?
Debt Management is not a loan, but a means by which you can consolidate all your outstanding unsecured debts into one affordable monthly payment without any further borrowing.
What if I fail to keep up my monthly repayments?
Because your debt management plan is an informal arrangement between you and your creditors you are able to cancel it at anytime. Clearly this will be a signal to your creditors and you will see an increase in their collection actions, such as letters and phone calls.
Will the debt management plan be able to include all of my creditors?
A Debt Management Plan will include all of your unsecured creditors. However there are some which may not be able to be incorporated into a Debt Management Plan such as creditors with whom you have priority debts, i.e. debts if not paid will result in significant penalties such as having your home repossessed.
Will my credit rating be damaged by entering into a debt management plan?
When you decide upon the Debt Management Plan route, it does mean that your current credit agreement terms will have been broken. Therefore this does mean that it will have an unfavourable effect on your credit rating and you will not be able to apply for any further unsecured credit until you have repaid existing debts in full
Will you need to check my credit history when starting a debt management plan?
No credit checks are required as we will not be lending you any money, just helping to manage your current outstanding debts with a debt management plan.
Will my creditors definitely accept a debt management plan?
By law, your creditors have to accept the payments that we make on your behalf. However, we cannot guarantee that your creditors will accept your Debt Management Plan favourably, which will determine how successful we are in freezing interest and charges
Will I have to pay my debts off over a longer period of time?
Yes, you will have to pay them back over a longer period, however, you will be paying an affordable monthly payment which will give you peace of mind.
Will I be able to get a debt management plan if I have CCJ ’s?
If you have an existing CCJ (County Court Judgement) you will be applicable for a Debt Management Plan.
Does it matter if I am a homeowner or tenant, unemployed or working part time?
Debt management Plans are suitable for both Home owners and tenants.
What if my circumstances change whilst on a debt management plan?
If your financial circumstances change get in touch with us immediately. We can review your current arrangements and will work with you to discuss options and give you alternatives.
Will a Debt Management Plan pay off my debts?
Our debt management plan consolidates all of your outstanding debts allowing you to make affordable monthly repayments to clear this debt.
Do I have to tell anyone that I am on a debt management plan?
Madison Financial will not disclose any personal information regarding your Debt Management Plan unless you request that we do so. If you do not wish anyone to know that you have a Debt Management Plan in place you do not need to inform them.