Frequently asked questions
1. WHAT IS A DEBT MANAGEMENT PROGRAM?
3. HOW DO I PAY FOR THIS SERVICE?
4. HOW DO I KNOW THAT MY CREDITORS ARE RECEIVING PAYMENT?
6. HOW MUCH WILL EACH OF MY CREDITORS BE PAID?
7 .WILL THIS AFFECT MY CREDIT RATING?
8. WILL MY EMPLOYER KNOW ABOUT THIS PROGRAM?
9. IF I HAVE SPARE MONEY SOME MONTHS CAN I PAY MORE?
12. HOW DO I TAKE THE NEXT STEP?
1. WHAT IS A DEBT MANAGEMENT PROGRAM?
A debt management program is a process by which all your debts are consolidated into one affordable payment. This payment is then shared between your creditors in an amount proportional to the debt owed to them. Your appointed debt management specialists will negotiate the level of payments directly with your creditors on your behalf.
HOW WILL THIS HELP ME?
Solve Debt will arrange for their specialist advisors to negotiate a debt management program with your creditors, who will administer the program by making monthly payments to your creditors. This will mean you only have to make one monthly payment to the specialist advisors, from which all your outstanding debts will be paid. This will mean peace of mind, as you will have the reassurance that you will no longer be chased for payment of arrears.
The program will run in line with industry standards and the requirements of your creditors, resulting in each of your creditors receiving a monthly payment and therefore refraining from issuing proceedings against you.
It is quite possibly the case that your current minimum repayments exceed your disposable income. Making one affordable monthly payment, into a debt management program, can rectify this problem. The level of payment will be calculated by first accounting for all your necessary expenditure.
It is possible that the interest on your debts, or at least some of them, can be frozen. This greatly reduces the level of burden of your debts and allows for a quicker repayment. Although we cannot guarantee that interest will be frozen, in many cases this can be achieved. It is even possible for a debt to be written off, particularly your smaller debts.
You should be aware that no guarantee can be given as to the freezing, or writting off, of any particular debt. Also although your specialists will endeavour to reduce your monthly committments again no guarantee can be given than will happen. Any particular outcome is purely dependent upon the negotiation between your advisors and your creditors. Even if the specialists manage to reduce your total monthly repayments, it might have the effect of increasing the period of repayments necessary to honour your outstanding debts. In some cases the amount of money owed to a particular creditor may increase if they are unwilling to accept a lower repayment figure but are happy to restructure your existing debt over a longer repayment period.
3. HOW DO I PAY FOR THIS SERVICE AND WHAT ARE YOUR CHARGES?
You may quite rightly think that if you can't afford to pay your debts currently then you can't afford to pay anybody to sort them out for you. The simple answer is that you can, because their charges become a part of he amount you pay monthly. It is understandable for you to think that putting together a debt management program is going to be too expensive and a further burden on your position. But you can afford to enter into a debt management program as the cost of preparing your program and getting the program accepted by your creditors is covered by your first monthly payment. The specialist advisors will then continue to administer your program, on a monthly basis, making payments to your creditors. A fee is normally deducted from your monthly repayment to cover their costs. You will NOT receive a separate account for their services. It is possible that your first repayment will be used to cover their administrative set up costs which, if true, would initially increase your debt to your creditors. Please ensure that you discuss the particular charges with the Company we introduce you to - charges can vary
4. HOW DO I KNOW THAT MY CREDITORS ARE RECEIVING PAYMENT?
Your debt consolidation specialists normally send you a statement showing exactly what has been paid. You will, of course, continue to receive statements from your creditors as normal, which will show what payments they have received.
5. CAN I STOP THE PROGRAM?
The reduced payments, which have been negotiated with your creditors, are subject to all the conditions of the program being adhered to. You should therefore be aware that should your program be terminated you would quickly become responsible for the full amount of your debt at the full repayment levels. It is therefore to your distinct advantage to remain in the debt management program, as indeed do the vast majority of our clients. If you do wish to terminate the program you are free to do so at any time, without further cost to yourself.
6. HOW MUCH WILL EACH OF MY CREDITORS BE PAID?
This depends upon two factors: the amount you are able to pay each month and the total amount you owe a particular creditor. Payments to individual creditors can only be calculated when we have received all the necessary information required to construct a debt repayment program.
7. WILL THIS AFFECT MY CREDIT RATING?
Possibly. If you are in arrears with your payments it is quite likely that your creditors have already recorded this information onto your credit history. However, if you successfully complete your debt management program you will no longer have any creditors.
8. WILL MY EMPLOYER KNOW ABOUT THIS PROGRAM?
No. There is no reason for anyone other than your creditors to be informed of the program.
9. IF I HAVE SPARE MONEY SOME MONTHS CAN I PAY MORE?
When your program is set up we must maintain a minimum level of payment to your creditors. Should you find that you have spare money from time to time we shall be able to make further one-off payments to your creditors. If your fortunes change and you find yourself able to increase your monthly repayment, then the terms of your program can be altered.
10. HOW WILL I KNOW IF YOU HAVE RECEIVED MY APPLICATION?
Your specialist advisors will telephone you upon receipt of your application to discuss various aspects of our services.
11. WHAT SHOULD I DO IF I AM CONTACTED BY MY CREDITORS?
If any of your creditors make contact with youselves by telephone, take the details of the Company, whom you spoke to and their name and telephone number. Then you should let your debt management consultants know immediately and they will deal with their inquiry upon your behalf. If it is by letter, send a copy to your Debt Managment Consultants, importantly quoting your reference number.
12. HOW DO I TAKE THE NEXT STEP?
Click here to go to our debt management application form. This form asks the absolute minimum information to enable us to submit your request to our Debt Management Consultants. Once they are in receipt of your request they will contact you at their earliest convenience with a view to sending you their formal application form by post. Once you receive this form complete it carefully ensuring you answer ALL the questions carefully and honestly. Only if our specialist have your total and accurate details can they commence contacting your creditors meaningfully.
Once completed return them to the consultants at your earliest convenience. They will then be able to negotiate with your creditors and produce a revised monthly repayment schedule. You are under no obligation by completing our online form. Our specialists are always available should you wish to discuss your situation in the strictest confidence.