Debt management FAQ
If you have a query that is not covered in this section then please call one of our friendly experienced advisers on the number above.
1. Will you deal with all of my debt?
2. Will I end up paying for longer?
3. Why can't I negotiate with creditors myself?
5. What do I pay my management fee for?
6. Can I be sure my creditors will accept the arrangement?
7. Can belonging to a debt management programme damage my credit history?
8. Is there a trade association?
9. If I want to leave the programme will I be charged?
Q1. Will you deal with all of my debts?
A. We will deal with all of your unsecured credit and non-priority debts. This includes personal loans, credit cards, overdrafts, catalogue debts, etc.
Other types of debts must be given priority because of the serious consequences of not maintaining regular payments. You must continue to make these payments yourself. Examples include your rent or mortgage, any loan secured against your property, hire purchase agreements, council tax and utilities such as gas, electricity and water.
When we assess your financial situation, we make suitable allowances for you to be able to afford your priority debts and your day to day living costs before we calculate how much you can afford to pay towards your other creditors.
Q2. Will I end up paying for longer?
A. Because we negotiate lower monthly repayments on your behalf, your debt will take longer to repay, however the repayments will be affordable.
Our programme is only offered to clients who, because of their financial circumstances, cannot afford to make the minimum payments required by their creditors each month. Our service allows you to make an affordable payment, every month, towards reducing each of your debts - instead of continuing to struggle, having to miss payments and incurring additional charges.
The programme is focused on you and your ability to pay, and if your circumstances change, then Debt Advisers Direct can revise your programme accordingly.
Q3. Why can’t I negotiate with creditors myself?
A. You can. Debt Advisers Direct is here as an alternative because many people don’t feel equipped to negotiate for themselves, or they’re too busy, stressed, emotional or depressed to deal with creditors. Sometimes the relationship with your creditors may have broken down, or you are simply unable to meet your creditors’ demands. That’s where we can step in on your behalf.
A. At Debt Advisers Direct, we are committed to being completely clear and open about the charges for our services. Your first monthly payment is an initial fee for setting up your Payment Programme and is not paid to your creditors. There’s a monthly fee of 15% included in your affordable monthly payment (subject to a minimum of £25.00 and a maximum of £100.00).
The set-up fee includes:
- Compilation of the Draft Programme
- Appointment of your own dedicated Personal Finance Manager (PFM)
- Communication with your creditors either in writing or by telephone
- Preparation of the financial statement
- Calculation and issue of the reduced repayment proposals
The initial cost is used to set up your Programme, however we give you a 14 day ‘cooling-off’ period so you can be sure you’ve made the right decision. If you decide to withdraw from the Programme within 14 working days from the day you confirm acceptance of our business terms or, if earlier, from the date we receive your first monthly payment, we’ll refund your initial fee. If you remain on the Programme for its full term, we’ll waive our fees over the final six months to the total value of your initial fee.
Q5. What do I pay my management fee for?
A. Debt Advisers Direct offers a dedicated service designed to suit your individual needs. Using our free phone telephone line will put you in touch with a fully trained Initial Adviser who will make a detailed assessment of your financial situation and offer the most appropriate debt management solution for you.
Our Creditor Liaison Department works very closely with the credit industry, using their skill and experience to negotiate suitable repayment arrangements on your behalf. The day-to-day management of your account will be dealt with by your own Personal Finance Manager (PFM) who will also be on hand to answer any queries or concerns you might have.
We will keep you up to date with our progress through regular correspondence and detailed monthly payment statements. Throughout your Debt Management Programme we will carry out regular reviews of your finances and negotiate new arrangements with your creditors whenever your situation changes. Above all, you’ll have the peace of mind that comes with knowing that your finances are being managed professionally and your creditors are being repaid regularly at an amount that is affordable to you.
Q6. Can I be sure my creditors will accept the arrangement?
A. We’re in daily contact with creditors and have built up excellent working relationships with them. Many years of experience has shown that, although your creditors are not obliged to freeze interest or accept reduced payment arrangements, most creditors welcome a reasonable payment proposal that’s agreeable to both parties.
Q7. Can belonging to a debt management programme damage my credit history?
A. Joining our Debt Management Programme won’t directly affect your credit rating. However, if you are experiencing financial difficulty your credit rating may have already been affected.
Any of your creditors may issue a default notice to register the fact that your original agreement with them has not been maintained, and the credit reference agencies provide information about your financial history to other potential lenders.
Q8. Is there a trade association?
A. We are members of DEMSA, which is the Debt Managers Standards Association; an organisation founded to monitor and maintain high standards and to promote good practice within the Debt Management industry. Membership is reliant upon meeting the high standards set out in DEMSA’s code of conduct. You can visit their website on www.demsa.co.uk.
Q9. If I want to leave the programme will I be charged?
A. No. There is no charge for leaving our Debt Management Programme, but we do ask for two weeks’ written notice. This gives us time to inform your creditors and ensure a smooth transition back to you. Your initial payment covers the cost of setting up our Debt Management Programme.
For the many clients who complete the programme, we waive our management fees during the last six months to the value of that payment. Also, if you decide to change your mind after our agreement has started, we offer you a cooling-off period of 14 working days.
Subject to status. Conditions apply. Repaying debt over a longer period may increase the total amount to be repaid.
Your ability to obtain credit will be affected in the short term and might be affected in the medium to long term.
Fees payable. Calls may be recorded for training and quality purpose
Debt management services are provided by Gregory Pennington Ltd, part of the Think Money Group.
Debt Advisers Direct © 2008 All rights reserved. Debt Advisers Direct is a trading style of Freeman Jones Limited.
Carlton House, Vere Street, Salford M50 2GQ. Company registration No. 4348410. Registered in England and Wales
