Debt Management Programme- Frequently Asked Questions
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This information has been written to help answer several commonly asked questions in relation to Our Debt Management Programme:
1.
Key points about our service.
2. What will we do as a company?
3. How much do I have to pay?
4. What about letters from creditors?
5. What if I already have a CCJ?
6. How do I know my debts are being paid?
7. What if I am unable to keep up my payments?
8. What is the charge for this service?
9. Will this affect my credit rating?
10. Key points about our customer care.
1. Key points about our service:
- We negotiate on your behalf to reduce your current loan and credit card payments to just one monthly affordable payment.
- We will request that your creditors FREEZE or REDUCE their interest charges.
- You pay one monthly payment to ourselves and we will forward this onto your various creditors on a pro-rata basis.
- This arrangement will then ensure you can afford other essential bills such as Mortgage, Rent, Gas, Electricity, Housekeeping, Telephone etc.
2. WHAT WILL WE DO AS A COMPANY?
We negotiate with your credit companies to reduce your monthly payment and request them to freeze their monthly interest charge. We will collect one single monthly payment from yourself and pay your creditors on your behalf. This will make managing your debt payments far simpler.
3. HOW MUCH WILL I HAVE TO PAY?
You decide, with our advice, on a single affordable monthly payment.
4. WHAT ABOUT LETTERS FROM CREDITORS?
We will respond to the letters for you, send them in and we will take action accordingly. (N.B. we will destroy correspondence received as soon as it has been used.)
5. WHAT IF I ALREADY HAVE A CCJ?
You need to maintain the CCJ payment that you have agreed with the courts until we advise you to stop. We can then apply to the courts with our offer to get an arrangement in place.
6. HOW DO I KNOW MY DEBTS ARE BEING PAID?
Once we receive up to date balances from your creditors, we will apportion your monthly payment between them based on how much is owed. We will issue a statement showing how much each creditor will receive. This will remain fixed unless your circumstances change. We will also issue a statement on request showing all transaction on your account. In addition to this, you will still receive your statements from your creditors.
7. WHAT IF I AM UNABLE TO KEEP UP MY PAYMENTS?
When agreeing your monthly payment we help to ensure it is affordable for you. It is then important for you to ensure there are sufficient funds in your account when your payment bills fall due. In the event of non-payment we will be unable to pay your creditors and this could result in them cancelling the agreements that we have made on your behalf. This would lead to your payments being increased to their previous level or ultimately your creditors demanding complete repayment. It is, therefore, in your interest that your payments are made each month.
8. WHAT IS THE CHARGE FOR THIS SERVICE?
As stated earlier, you will only pay one affordable monthly payment. Included within this payment will be a 13% administration or a management fee which will be retained from your monthly payments, this is to cover the cost of our service, our aims is to help you break free from debt in the shortest time possible which is why our fee is the lowest charging fee compared to other financial management companies in the UK. As most of our work will be carried out at the start of the programme, we will retain the first monthly payment to cover this cost (i.e. it will not be initially used to pay your creditors).
9. WILL THIS AFFECT MY CREDIT RATING?
Possibly, but since you are currently experiencing problems paying your debts, it is possible that one or more of your creditors have already recorded adverse findings against you. However, by joining the programme we will ensure a regular monthly payment is made to each of your creditors.
10. Key points about our customer care:
OUR
DEBT MANAGEMENT programme
has been designed to meet your needs.
Our programmes are flexible so that if your financial circumstances
change, then payments can be amended accordingly.
IF YOUR income is reduced, then we can reduce your monthly payments so that it remains affordable.
IF YOU find you have surplus income available, then you can increase the amount you pay. This will enable you to pay your debts off quicker.
WE CAN also help negotiate a favourable settlement figure in the event that you are able to make a lump sum contribution towards your debts.
WE WILL contact you on a half-yearly basis for a financial review to ensure you are happy with the service and to ensure we are aware of any changes in your financial circumstances.
If you want to take control of your finances in 2008, find out more, call us on 0800 0439 245 or Fill out our call back form for a Confidential Review