FAQs

• What is a debt management plan?
• Can you really negotiate 0% interest on my unsecured debts?
• What about lower payments, how do you arrange that?
• Is a debt management plan a loan and will I be credit checked?
• Can you settle my debts for less? If so, for how much?
• What happens when I get calls and letters from my creditors?
• What happens if my circumstances change?
• Do I keep my current bank account?
• How do I know you are paying my creditors?
• What debts does a debt management plan cover?
• Do I need to tell my partner?
• What happens when I contact you?
• What are your fees?
• Why is your service better than a free charity service such as the citizens' advice bureau?
• Will I get a default notice?
• Will I feel a whole lot better once my plan is in place?

What is a debt management plan?

A debt management plan is flexible agreement between yourself and your creditors. It is an informal arrangement that allows you to pay a monthly figure that you can afford. The debt management company will arrange this with your creditors and endeavour to negotiate 0% interest and no more charges. The company will deal with creditors on your behalf and will handle all calls and letters if requested. Once an amount is agreed to be paid to the creditors our clients pay this money directly to us and we distribute that money to the creditors on their behalf.

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Can you really negotiate 0% interest on my unsecured debts?

Yes we can. We are not legally allowed to guarantee this, as debt management plans are voluntary informal agreements, but in almost every case we do negotiate this.

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What about lower payments, how do you arrange that?

We carry out a very detailed financial assessment. We prove to your creditors that the amount we are offering is what you can afford.

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Is a debt management plan a loan and will I be credit checked?

We never loan money and there is no reason for a credit check by ourselves.

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Can you settle my debts for less? If so, for how much?

Again we are not legally allowed to guarantee such things as they cannot be known until they come about. We always check with your creditors to see what they are prepared to settle your debts for. We are often able to negotiate some amazing settlements. We have received offers for less than half of the debt in many cases. If you are in a position to settle, talk to us and we'll do our best for you.

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What happens when I get calls and letters from my creditors?

You are always welcome to deal with this yourself if you wish, but it's our job to deal with it for you. Just forward the letters to us or give us a call if a creditor calls you. We'll call them back, find out the problem, solve it, and call you back to confirm everything is ok. It's often best for us to deal with these people. When they speak to you they often try to pressure you to pay money there and then that perhaps you don't have. They can't apply that pressure to us and they know that we know what they can and can't do. We are experts in dealing with creditors.

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What happens if my circumstances change?

We review all clients' accounts every 6 months. If your circumstances have changed we will contact all of your creditors and make a new offer based on your circumstances. Some debt management companies don't have much of a review procedure. The review is essential because it means you will have less hassle from your creditors. We will contact your creditors and give them the information they need before they even ask for it. This means a much easier life for you and for us.

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Do I keep my current bank account?

If you owe money to your bank we advise you open a new bank account as it's possible that your current bank may keep all of your wages if they are paid into it. We can help you with this. If you do not owe your bank any money then you can keep your existing account.

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How do I know you are paying my creditors?

We send you a statement each month showing the payments we have made. We are licensed by the Office of Fair Trading and registered with the Data Protection Register for your security. Your creditors will still continue to send you statements, so you will have total peace of mind.

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What debts does a debt management plan cover?

A debt management plan can only cover your unsecured debts. It will not cover your mortgage or any other type of secured loan. It does not cover student loans or any money owed to the government such as taxes. The government make sure they get their money first! However the money owed that must be paid allows you to pay less to your unsecured debt. You can only pay what you can afford to pay after all of the expenses you have to pay are taken care of.

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Do I need to tell my partner?

You do not have to tell your partner as long as none of the debts are shared debts. However we do advise that honesty is the best policy.

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What happens when I contact you?

We will have a long frank talk about your debts in a friendly non-judgemental manner. We will explain to you what we do, and how we can help. There is no obligation if you call us, and we will be happy to listen and allow you to take some of that stress away!

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What are your fees?

Money Managers try hard to keep our fees as low as we possibly can. Of course we are a business and we do have rent and wages to pay, so much as we would like to, we can’t offer our service for free. However you get the highest levels of service, and we will deal with every single aspect of your debt for you. We are confident that we will save you much more than we will ever charge you.

Once a debt management plan has been arranged and your payments to your creditors start, the first monthly payment comes to us. Your creditors will be paid from the second payment onwards. This is the standard way of charging an ‘arrangement fee’, and doesn’t cost you any extra money each month.

Our monthly management fee varies depending on the number of creditors you have. We feel this fairly reflects the amount of work involved and is a fair way of charging for our services. This amount comes out of the arranged monthly payment to your creditors and is NOT charged on top, meaning it is always affordable.

Our fees are amongst the lowest in the industry. For this fee we receive and distribute all monies to your creditors. You just need to pay one monthly payment direct to us. We deal with every letter and phone call from your creditors so that you can get on with living your life and not worrying about your debts. We provide expert advice and we resolve all issues with your creditors for you. All you need to do is forward all mail and let us know when creditors call. We do the rest each and every month. We provide ongoing financial assessments and give your creditors everything they need to help to keep you on 0% interest and reduced payments.

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Why is your service better than a free charity service such as the citizens' advice bureau?

Yes we do charge a small management fee. We believe this is money well spent. You often get what you pay for in this world. The CAB won't let you call them every time you get a threatening letter from your creditors and won't call them that day and resolve it for you, and then call you back to let you know it's resolved. With the CAB you will receive some basic help and advice (and they do a great job) but basically you will be dealing with your debt on your own. With Money Managers you will never have to speak to your creditors again if you choose to not do so. We are experts at dealing with creditors. This is what we do. This is all we do.

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Will I get a default notice?

You may get a default notice. This is often done to protect the creditors legal position. It means that you have defaulted on your credit agreement and a new informal agreement is in place.

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Will I feel a whole lot better once my plan is in place?

You certainly will. Call us today, and we'll explain in person exactly how!

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