Questions:

• Debt Management
• A. How do I know my debts are being paid?
• B. How long will the Debt Management Plan last?
• C. How much will I have to pay?
• D. Who administers the Debt Management Plan?
• E. Will a Debt Management Plan affect my credit rating?
• F. How much are your fees?
• G. What do the fees cover?
• H. Will you deal with all of my debts?
• I. Will the creditors accept the arrangement?
• J. Do I have to pay to cancel the Debt Management Plan?

Answers:

• A. How do I know my debts are being paid?
  

  Each month you will be sent a statement which will show a breakdown of payments sent to your creditors. In addition to this you will receive statements from your creditors.

   

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• B. How long will the Debt Management Plan last?
  

  This depends upon you. You will have a lot of flexibility in the Debt Management Plan, every six months we will automatically review your circumstances. If you feel you can afford to pay more, you have the flexibility to increase your payments to clear your debt quicker. However if you are struggling with the payment we can reduce your payments further - this will increase the period you will be on the Debt Management Plan and will also increase the total you have to repay. On the initial call we can give you an estimated time scale of how long we think it will take you to manage your debts and complete your plan. Remember this figure will just be a guideline and it is based on the figures which you give to us.

   

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• C. How much will I have to pay?
  

  This depends upon what you can realistically afford to pay - we will run through a thorough financial statement taking into consideration your income and all your essential bills.

   

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• D. Who administers the Debt Management Plan?
  

  Here at the Debt Advisory Line you will be assigned your own Personal Account Manager who will look after you every step of the way. You will be provided a direct number to your Personal Account Manager and will not be passed around a call centre.

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• E. Will a Debt Management Plan affect my credit rating?
  

  As you are already experiencing financial difficulties, it is possible one of your creditors has recorded an adverse finding against you; it is likely a default notice will be noted against your credit file which will affect your credit score in the short – medium term. However by using the Debt Management Plan we will ensure regular payments are made to each of your creditors. Once you have successfully completed your debt management plan you can write to the credit reference agencies and advise them that your debts have been settled..

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• F. How much are your fees?
  

  At Debt Advisory Line we are clear about our charges for the service provided. Your first two monthly payments and an administration fee is an initial cost of setting up your Debt Management Plan and are not paid to your creditors. During this set up period your creditors will place your account in arrears or further into arrears. After the initial set up fee there’s a monthly management fee of 17.5% (subject to a minimum of £35) which is calculated on your agreed monthly contribution and deducted from your payment that we send to your creditors.

  The set up fee includes:

  • - A completed Draft  Programme
  • - A full assessment of your financial statement
  • - Appointment of a dedicated Personal Account Manager
  • - Liaising with your creditors by telephone or in writing
  • - Calculation and distribution of the reduced repayment proposals

  The set up fee is non refundable, however we provide a 14 day “cooling off” period giving you peace of mind that you have made the right decision. If you change your mind within 14 calendar days of making your first payment we'll refund your payment.

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• G. What do the fees cover?
  

  Debt Advisory Line offers a specialist service which is built around your circumstances and your needs. By calling our free phone telephone number you will speak to an experienced and full trained Advisor who will take you through a detailed assessment of your financial circumstances and provide you with the best debt solution for your needs.

  Throughout the duration of your debt management plan your dedicated Personal Account Manager with continually review your circumstances ensuring that you have complete peace of mind, every month you will be sent a detailed statement showing the payments to your creditors.    

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• H. Will you deal with all of my debts?
  

  We will only deal with your unsecured credit and non-priority debts. This includes personal loans, overdrafts, store cards, catalogues, credit cards etc.

  Debts which we can’t help with include mortgage, council tax, hire purchase agreements, utility bills such as gas and electricity. You must continue to maintain these priority payments as there can be serious consequences of missed payments.

  On the initial call when we assess your financial situation we will advise you on what debts we can help you with and those we can’t.

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• I. Will the creditors accept the arrangement?
  

  Debt Advisory Line have built up excellent working relationships with creditors and from our experience creditors welcome a realistic repayment proposal that is reasonable for both you and them. While we will negotiate for the interest and charges to be frozen on your account your creditors are not obliged to freeze interest or accept reduced payments and unless they do repaying the same debt over a longer period of time will increase the total amount you have to repay.

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• J. Do I have to pay to cancel the Debt Management Plan?
  

  No. There are no fees involved for cancelling the Debt Management plan but we do ask for two weeks written notice. This provides us with enough time to inform your creditors. Remember you will have to deal direct with your creditors if you decide to cancel the Debt Management Plan.

  For extra peace of mind if you change your mind within 14 days of making your first payment you are entitled to a full refund.

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