Debt Management FAQs
The Complete Financial Solution Providers
Debt Management FAQs
If I enter a Debt Management Plan will I be charged me a monthly fee?
Whilst some debt solutions do carry modest fees these are always agreed with you in advance.
Will Creditors always accept my Debt Management Plan?
Creditors are not obliged to accept reduced payments. Unless they do accept the Debt Management Plan interest and other charges will continue to be added to your debt.
I have been on a Debt Management Plan for twelve months and I can no longer keep up my repayments – what can I do?
You should contact your advisor as soon as you begin to struggle. They will be able to use their expertise to help adjust your plan or suggest more appropriate solutions for your circumstance. The key thing is to ensure that you can afford the repayments so you are not simply adding to your financial problems.
How fast can I sign up for a Debt Management Plan?
We can start acting on your behalf at the end of your initial call (provided you have agreed to the terms and are able to make your initial payment over the phone).
How do I know if a Debt Management Plan is right for me?
Please do not hesitate to get in touch with Carrington Dean by phoning us on our freephone 0800 019 5696 number. Alternatively complete the online application and we will call you back after undertaking a detailed review of your individual circumstances, and deciding if a Debt Management Plan is the best solution for you.
What is the difference between a Debt Management Plan and a formal arrangement?
A Debt Management Plan is an informal arrangement between an individual and their Creditors. Debt Management Plans are not binding nor are they legally enforceable and are primarily aimed at eliminating the process of adding additional interest on outstanding balances. They involve the full repayment of any debts over an extended period of time.
A formal arrangement is however a legally binding agreement which is regulated by legislation. Creditors must agree to a formal arrangement being taken out, although there is no obligation on their part to do so. At the end of the protected period, all remaining debt owed to Creditors will be written off. Please refer to the Formal Arrangement section for more information.
What happens if I am unhappy with the debt management company?
If you are unhappy with your debt management company it is very important that you talk to them. If this does not result in a change, you should contact the Financial Ombudsman, details can be found in the links page.
If you have any further questions please do not hesitate to contact us on freephone 0800 019 5696.
All solutions are subject to status and conditions apply. Please note that 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 may also be affected in the medium to long term.