- How long will my debt management plan last?
- It depends how large your debts are and how much disposable income you've got available. The length of the plan will be set out at the start but it can last anything from a few months to several years.
- What happens if my financial circumstances change?
- If something happens and you find your financial circumstances different to when you first arranged your debt management plan, it's highly likely that the plan will be able to be altered to make it possible for you to continue to pay off your debts.
- Will all my creditors agree to me having a debt management plan?
- Your creditors would rather get their money - even if it's going to take a while - instead of not getting anything at all. Therefore, they're highly unlikely to be opposed to you arranging a debt management plan.
- Do I have to have a credit check?
- No, it's not necessary to have a credit check in order to arrange a debt management plan.
- Will I continue to get letters and phone calls from my creditors?
- Because your debt management plan is informal and therefore not legally binding, your creditors will probably still get in contact. However, as time goes by and they see that they're receiving regular payments, their calls and letters will become much less frequent.
- Can I stop my debt management plan at any time?
- Yes, you can stop your repayments whenever you like. But, please be aware that if you cancel your plan, the interest and the charges that your creditors have frozen are likely to resume.
- How will I know how much I still owe?
- When your debt management plan is first arranged you'll get an outline of how much your debt is likely to decrease over time. In addition, your creditors will continue to send you statements showing your current balance.
