Debt Management FAQs

Do my creditors have to accept reduced payment offers?
By law creditors have to accept and bank any payment you make over £5, however anything other than the contractual payment can constitute a breach of contract and collection action can be taken.

How will my credit rating be affected?
You should expect that your credit rating will be adversely affected in the short to medium term. This is because, by entering into a plan, you will not be making the contractual repayments on your unsecured debts. However, your credit rating may already be poor if you have arrears or a history of missed or late payments. Your credit file will show details to other potential lenders that you're paying reduced repayments. It will also show missed payments.

What type of collection action can be pursued against me?
As you are not making your full contractual payment you are defaulting on your account, this means your lender can pursue collection action against you such as County Court Judgements and possibly charges against your property if you own one. However we work with you and your creditors to keep this course of action to a minimum.

Can I include all my unsecured debts?
Most unsecured debts can be included however the exceptions are council tax arrears, court fines, and utility debts from your current address and rent arrears. This is not an exhaustive list; you can contact us for more details.

Are interest and charges guaranteed to be frozen?
No, however we work hard to do this by being in constant touch with your creditors and advising them of your situation. You can help by making a regular payment which shows your creditors you're serious about repaying your debt, this undoubtedly helps when negotiating with your creditors.

If you are considering a debt management plan or any other debt solutions and have any questions, please call us for expert, confidential advice on 08000 434 336.