A. When you enter into a DMP, all your unsecured debt payments will be consolidated into a single monthly payment that you’ll make to Debts.org.uk. We’ll then distribute your payments proportionally to your creditors on your behalf (after deducting our fees), in line with the payment amounts we’ve agreed with them.
So a DMP makes your life easier as you only have a single monthly payment to make, which we’ll make sure is both affordable to you and fair to your creditors.
A. DMP could be an option for you if you have multiple unsecured debts to different creditors that you can’t repay, and if you have money left over after paying for your essential living expenses to make monthly payments to your creditors. With a DMP, you pay all your unsecured debts back, but at a more affordable rate than before you entered into the plan.
A. Possibly, if it means not keeping up your contractual payments with your creditors. A DMP won’t affect your credit rating if the debt is already in arrears or default. In most cases, a person’s credit rating has already been damaged by the time they approach a debt management firm like Debts.org.uk.
The debts within your DMP will be shown on your credit file as ‘satisfied’ when they’ve been fully paid, but will also remain on the file for up to six years after this. And if you already have a default notice, this will also stay on your credit file for up to six years.
A. This depends on how quickly you’re able to supply us with the information we need and on the number of debts you have. That’s why we ask you to return your initial paperwork and make your first payment to us as soon as possible. As soon as we receive these from you, we can write to your creditors and distribute your payment.
A. Unlike most debt management firms, Debts.org.uk won’t charge you a set-up fee for your DMP. This means that a larger proportion of your monthly payments can go towards paying off your debts as soon as your plan has been set up.
Please note that we do charge a monthly management fee. This covers the costs of managing your plan, distributing your payments and liaising with your creditors on your behalf. This will be deducted before we distribute your payments each month. We’ll give you full and clear information about our fees before you enter into any agreement with us.
A. No. You can have a DMP whether you’re a home owner, tenant or live at home with your parents or other family members.
A. An unsecured debt is any debt that’s not secured against a property or asset. Common types of unsecured debts include bank overdrafts, personal loans, payday loans, credit cards, store cards and catalogue accounts. Only unsecured debts can be included in a DMP.
A secured debt is a debt that’s secured against a property or asset that you own. Types of secured debt include mortgages, hire purchase agreements and home-owner loans.
With secured debts, you may have to sell or give back the asset that the debt is secured against if you don’t keep up your repayments. This is why, when we calculate how much you can pay into a DMP, we’ll always leave enough money for you to keep paying your secured debts before working out how much you can pay into the DMP.
A. DMPs can only cover your unsecured debts, such as credit cards, payday loans and bank overdrafts. Household bills, mortgage arrears, child maintenance repayments and secured debts, such as mortgages and hire purchase agreements, can’t be included.
We’ll always take these into account when we calculate your disposable income, as it’s vital that you keep up to date with these priority payments. Your monthly repayments will be based on expenditure guidelines that have been put into place to make sure you can maintain a reasonable standard of living.
A. Your creditors don’t have to say yes to our proposals but should be willing to accept them if we can show that this will benefit both parties. If enough of your creditors accept the DMP to make it worthwhile, then your plan will go ahead. As a protocol-compliant company, we’re committed to only submitting realistic and sustainable plans to creditors, so there’s a good chance they’ll accept our proposals.
However, there’s no guarantee that any existing or threatened proceedings against you will be suspended or withdrawn once your DMP has been set up. Also, your creditors could still send you default notices and add interest and charges to your accounts, although we’ll try our best to negotiate with your creditors and arrange for these to be frozen.
A. A DMP isn’t a legally binding agreement so your creditors could potentially still take legal action against you. However, as Debt Debts.org.uk Direct have many years’ experience of setting up and managing DMPs, and have established excellent relationships with many creditors, this is less likely to happen if you keep up with your payments into the plan. And even if a CCJ is issued against you, the amount payable should be similar to the amount you’ll already be paying through your DMP.
A. We’ll send you regular statements showing how much you’ve paid into your DMP, the amounts we’ve distributed to your creditors, our monthly management fees and the total amount outstanding on your debts. So you’ll always know where you are with your DMP and how much you still have left to pay. When you’ve cleared your debts in full, your plan will come to an end.
A. Possibly. A DMP is an informal arrangement so it’s easy to adapt or change it if necessary. It can also be replaced with a different arrangement, such as an IVA, if that becomes more appropriate at a later date.
You should contact us as soon as possible if there are any changes in your circumstances, such as an increase or decrease in income or expenses, a financial windfall or a sale or gain of assets. When you speak to your Customer Service Adviser, they’ll be able to discuss with you any changes or amendments that may be suitable.
A. This will depend on why you’re missing your payments. If your circumstances have changed, we might be able to vary the terms of your DMP and agree new payment amounts with your creditors. If the changes mean you can’t make any payments at all, please contact us straight away so we can advise you of your options.
Lenders understand that sometimes, people come up against unexpected costs that mean they can no longer meet their DMP payments. So they should let you take a short break from your payments if absolutely necessary. However, if your problem are likely to be longer term, we may need to discuss an alternative debt solution that’s more suitable for your new circumstances.
Please note that in the very worst-case scenario, missing payments into your DMP could lead to you being made bankrupt. So it’s vital that you let us know if you can’t make your payments, whatever the reason.
A. A DMP lasts until all your debts have been paid off in full. Based on the information you provide about your income and expenditure, we’ll give you a timescale when we set up your DMP. This will state how many years and months we estimate that your DMP will last and how many payments you’ll need to make to pay off your debts.
However, a DMP is highly flexible, so you can start paying in more if your income increases, or possibly less if you’re finding it hard to meet your repayments. We’ll review your circumstances regularly and update your DMP if required. However, please note that it will take longer to complete the plan if you reduce your monthly payments and you could end up paying more.
A. You’re not legally obliged to tell your partner about your DMP but we do advise this, especially if their income has been taken into account when calculating your monthly payment amount.