Debt Management Plan FAQ

You are not alone | IVA | Debt Management

No. DebtPlus and our partners offer a complete guarantee of confidentiality and privacy in relation to your financial affairs. We will never disclose any information about you to any outside organisations and will never say who we are when we call you. This means that you can feel safe in providing your contact information, without the worry that others will find out that you are seeking our help.

We are extremely successful at negotiating with creditors and have a proven track record of getting offers accepted. We would like to make you aware that a creditor does not have to accept a reduced payment or to freeze interest and charges and this may result in your repayment term being extended. There is also no guarantee that any existing or threatened proceedings will be suspended or withdrawn. Any further collection actions may incur costs that will normally be added to the debt.

We have a dedicated Creditor Liaison department who will negotiate with your creditors on your behalf. Your dedicated Finance Manager will keep you informed.

Yes. As we negotiate a reduction in your monthly payments, and you are no longer repaying the agreed amount to your creditors, a note of this may be made on your credit report. If you currently have arrears or a history of missed payments or late payments your credit rating will already be affected.  Records are retained by the credit reference agency for 6 years.

A Debt Management Plan includes any unsecured debts such as loans, payday loans, credit cards, store cards, overdrafts etc… If you are struggling to pay secured debts such as your mortgage or HP agreements we will ensure these outgoings are prioritised in your income and expenditure calculation, so you do not fall behind on payments. We will always suggest ways to deal with your secured and priority debts.

  • A Debt Management Plan can remain on your credit file for some time after completion if a default notice has been issued.
  • If your creditors refuse to freeze interest or charges this can lead to increased debt level as repayments are lower than original contractual payments.
  • Debts could be repaid over a longer period of time than if contractual payments were made.
  • You will repay debts until they are paid in full or until your decide to opt out of the plan.
  • Repaying debt over a longer period of time may increase the total amount to be repaid.
  • Your ability to obtain credit will be affected in the short term and might be affected in the medium to long term.
  • An Informal agreement that can be stopped at any time should your circumstances change (for better or worse).
  • Interest and Charges could be frozen if creditors agree. We will negotiate with creditors on your behalf, so offers are more likely to be accepted and interest frozen than if you try to do this yourself.
  • Creditor Pressure is eased as you can direct them to your Case Manager.
  • 1 easy monthly payment to cover all of your unsecured debts.
  • Payments are tailor-made to suit your individual needs.
  • You do not have to release equity from property.
  • You will repay all of your debts in full (unless you opt out of the plan).
  • The Agreement is preferred by creditors.