Frequently Asked Questions
Here is a list of frequently asked questions. If you still have any queries contact us and one of our friendly team would be happy to help you.

Q What is a Debt Management Plan?
Q What is an IVA?
Q How quickly can the plan be set up?
Q How much does it cost?
Q How much hassle is it for me to set up?
Q Do I need to cancel my Direct Debits?
Q What if my creditors contact me?
Q How safe is my money?
Q How will I know my creditors are being paid?
Q What if I need to change my monthly payments?

What is a Debt Management Plan?
It is a plan designed for those who are struggling to pay their creditors and to get them out of debt. By working closely with our clients we agree on a monthly payment amount that they can afford each month. Then we take over the control of their debts and negotiate for all interest and charges to be frozen leaving our clients with one affordable monthly payment.

 What is an IVA?
An Individual Voluntary Arrangement, IVA, is a legal contract between an individual and his creditors in a situation where the former finds it unable to meet his monthly repayment commitments. It is a legally binding arrangement supervised by a licensed professional, the Insolvency Practitioner. The purpose of an IVA is to enable debt-ridden individuals reach a compromise with their creditors and avoid the consequences of bankruptcy.
The IVA primarily helps you cut your debts to a level affordable to you and clear them over a predetermined period. The arrangement should offer a larger repayment towards your debts than if you were declared bankrupt. It is a totally private arrangement between you and your creditors and nobody outside other than the advisors need to know about this.
An IVA ensures that your home is protected and your job is not at risk. You can even take out a new mortgage while in an IVA.
Under the terms of the IVA agreement, you undertake to contribute as much as possible within your budget. Depending on your situation, you make a single payment every month for 3 to 5 years. After that, the remaining debt is written off, making you debt-free. Thus in reality, an IVA presents an opportunity for you to pay your creditors whatever you can in a manageable way. And depending on your situation, up to 75% of your debts can get written off through an IVA. A professional debt help agency can assess your financial situation and advise you if an IVA is the right option for you.

How quickly can the plan be set up?
As soon as you have agreed a payment schedule with an advisor and you have made the first monthly installment we will take over the running of your debts.

How much does it cost?
To cover our administration costs we charge a 15% management fee which is included within your monthly payment, subject to a minimum of £25 and maximum of £100.

How much hassle is it for me to set up?
All you have to do is send our easy to complete form back to us and we do the rest.

Do I need to cancel my Direct Debits?
Our plan is based on us paying your creditors an agreed amount every month. Any other payments to them that is not agreed in the plan should be cancelled. We do not want you to pay your creditors twice. Be careful not to cancel any other payments that are not on your plan.


What if my creditors contact me?
This may happen initially as we set up your plan but as we will be dealing on your behalf all you have to do is refer them on to us and instruct them to deal directly with ourselves. Any letters should be forwarded on to ourselves for us to deal with.

How safe is my money?
All payments made to us are held in a non-interest accruing client account that cannot be used for any other purpose than paying your creditors.

How will I know my creditors are being paid?
You will receive a monthly statement from us showing who has been paid and how much.

What if I need to change my monthly payments?
We work around your circumstances and if they change so does your flexible payment plan. We also conduct periodic reviews of your file to keep up to date on your financial situation.