A. By the time people approach a debt management firm like Debts.org.uk, their credit rating is usually damaged already. When your PTD has been set up, it’s likely that credit reference agencies will record details of it on your credit file. If this happens, your credit rating will be adversely affected for up to six years from the PTD’s start date. And if you already have a default notice, this will also stay on your credit file for up to six years.
During your PTD, you’re not allowed to obtain any further unsecured credit. After it ends, you may find it harder to obtain credit or that there’s an impact on the cost of future credit arrangements.
A. Your PTD could be approved within four weeks of you sending us all the information we require. The sooner we receive full details about your debts, income and expenditure, the sooner we can start contacting your creditors with our proposal. Please note that the number of debts and creditors you have could affect how long it takes to set up the PTD, as we’ll need to wait for everyone to respond before formalising the agreement.
A. No, creditors don’t pay PTD set-up fees. If your creditors accept the PTD proposal, then your Trustee will deduct fees from your monthly payments before distributing the money. The fee amount will have been agreed by the creditors at the proposal meeting.
A. Each case is different. We’ll give you full details in writing after we’ve discussed your case or you can refer to the Terms and Conditions included in your welcome pack. We’re always very clear about our set-up and management fees, and our initial advice is completely free.
A. PTDs are designed to help you manage unsecured debts like bank overdrafts, payday loans and credit cards. Secured debts, such as mortgages and hire purchase agreements, can’t be included. Please note that your secured creditors can still repossess your assets if you fall behind with your payments.
When we calculate your disposable income, we’ll always take your secured debts into account as it’s crucial for you to keep these payments up to date.
A. There’s no obligation for your creditors to accept a PTD and they’ll generally only agree to it if they feel your offer to repay your debts is fair and reasonable. For the PTD to go ahead, at least half your creditors, or those representing at least a third of your total unsecured debt amount, must agree to it.
A. We’ll send you regular statements showing how much you’ve paid into your PTD, in the form of an annual report showing how much money we’ve distributed to your creditors, the fees we’ve deducted and the total amount outstanding on your debts. When your PTD comes to an end, any debts remaining in it will be written off.
A. If there’s a change in your income or outgoings, we may be able to amend or vary the terms of your PTD, provided your creditors agree to this. So if your income or expenses increase or decrease, you come into a lump sum of money or gain any assets, you must tell your Trustee straightaway. They’ll tell you whether your arrangement needs to be changed.
A. Whatever the reason, you must inform your supervisor as soon as possible if you can’t make a payment. If you’re struggling to meet your monthly payments due to a change in circumstances, it may be possible for your supervisor to negotiate new arrangements with your creditors so that your PTD continues. If the changes mean you now can’t afford to make any payments at all, you must contact your supervisor straight away to avoid any issues.
Please note that missing payments will extend the term of your debt and could lead to your PTD failing. If this happens, your creditors could force you into bankruptcy.
A. A PTD typically lasts for four years. Provided you comply with the terms of your PTD, don’t miss any payments and make all your payments on time, then your outstanding unsecured debts will be discharged when the PTD ends. You’ll receive a letter of discharge and your creditors won’t be able to pursue you for interest or any remaining balance.
Please note that if you’re a homeowner and are unable to re-mortgage to release any equity from your property, this will extend the PTD by a further 12 months.