Debt Management: FAQs
How does it all work?
You provide us details of your total debts, total monthly outgoings and total monthly income.
Based on that figure we will prepare a debt solution tailored to your needs and send out some paperwork for you to sign. Once that paperwork is returned we will begin work on your behalf and negotiate with your lenders to help reorganise your debts.
Do I need copies of the agreements?
It does not matter if you have lost or mis-placed documents, they can help but most importantly we need up to date statements showing your current balances.
How long does it take?
Your debt solution can be arranged in as quickly as 4 weeks. As soon as your paperwork is returned with any relevant payments we will begin work.
How much does it cost?
Our fees are built into your plan and vary depending on how much you pay or what kind of debt solution you enter into. The costs will be clearly explained to you before you proceed and confirmed in writing.
Are there any repercussions or will I fall out with my lender?
It is likely that relationships have already fallen down with your lender due to arrears and missed payments on the account. A debt management plan or IVA will result in a default notice being entered against your debts.
However, a well structured plan that you stick to will help repair relationships with your lenders as you are showing willing to repay your debts.
Will it affect my credit rating?
Yes. If default notices are served they will show on your credit file and will prevent you from being able to obtain credit.
Will I be able to obtain credit such as mortgages in the future?
Yes. Over time you may be able to obtain essential forms of credit such as mortgages though due to the current economic climate lending criteria’s are becoming much more stringent.
Can I keep using my credit card?
The last thing you should do is create more debt.
It is unlikely that you will be able to obtain credit for sometime but fuelling the problem is the last thing you should be doing.