This is dependant on your circumstances. It is important that you are able to keep up regular monthly payments so that your creditors will not feel the need to cancel any agreements. This is why we will work out a tailor made payment plan which is based on your earnings and expenditure.
You will have to continue to make payments until all your debts have been repaid in full.
Your monthly payments will be proportioned based on how much each creditor is owed. You will receive a statement showing how much each creditor will be issued, and from then on you will receive a quarterly statement showing all the transactions that have been made from us, as well statements from your creditors.
A Debt Management Plan and a Debt Consolidation loan do a similar thing, they both offer you one single payment to make to your unsecured creditors. A debt consolidation loan means that you will have to take out a loan to pay off your creditors. A debt management plan does not require any further borrowing, as One Advice will negotiate with your creditors so that they accept a lower payment to your debts.
Your first month’s payment will go towards our implementation costs of setting up the programme and negotiating with your creditors. From there we have an ongoing administration cost which is included as part of your monthly payment – not taken in addition.
No, it is a way of consolidating your repayments into one affordable payment without further borrowing.
With a Debt Management Plan, you make one lower monthly payment to us instead of unaffordable monthly payments to your creditors. One Advice will do our best to try and get your creditors to freeze any interest and charges on the account, but this cannot be guaranteed. You can forward any creditor correspondence to us and we will deal with it on your behalf.
Although a Debt Management Plan is able to include most of your existing creditors, there are those which cannot be included. These are called “priority debts”, meaning that if they are not paid then there will be serious consequences, such as not paying your mortgage could result in your house being repossessed.
Taking out a debt management plan will mean that you will be breaking the terms and conditions of your initial repayment agreement with your creditors. This means that it is likely to have an adverse affect on your credit record. However if you are currently failing to make your monthly payments then your credit rating will already be poor.
No, as we are not lending you any money we will not need to credit check you.
A Debt Management Plan means that you are defaulting on the original terms and conditions that you agreed with your creditors. Your Creditors are therefore entitled to issue a Default Notice.
As a debt management plan is not a legal procedure, there is no guarantee that your creditors will accept. However it the agreement is beneficial to both parties then it is likely to be accepted.
This is possible, but it is important to remember that instead of struggling with your debts now, you will be paying a smaller monthly payment. It is also possible that creditors may freeze interest and other charges on your account so that you are able to pay your debt off at a quicker rate.
Yes, you will be able to get a Debt Management Plan if you have any existing CCJ’s (County Court Judgements), and may be able to use your Plan to make repayments.
You do not have to be a tenant or a homeowner to be eligible for a Debt Management Plan, and as long as you have a surplus of income then it does not matter about your employment status.
If you find yourself in a situation where you are able to pay off more than you were previously, then we will be able to replace it with an alternative arrangement.
A Debt Management Plan is designed to make your monthly creditor payments much more affordable to you. But as you will be paying a smaller monthly amount, it will take you longer to clear your debts.
You do not have to tell anyone about your Debt Management Plan, if you so wish. We will also not disclose any information about your plan, unless you give us permission to do so.
If you find yourself struggling with large amounts of debt, there are solutions out there to help you. The One Advice website gives you an overview, but the best thing you can do is to contact one of our advisors on 0800 019 5870.
A Debt Management Plan offers you a way to make reduced repayments to your creditors. But if you qualify for an IVA (Individual Voluntary Arrangement) then any unaffordable debt can legally be written off as part of the agreement. Bankruptcy is a very serious route to take and you should consider all other options first.
It is likely that your creditors will no longer wish to continue to support you on your Debt Management Plan and may withdraw any previous help. However, there is more flexibility than with an IVA. If you are struggling to make your payment, talk to your case handler who will advise you.