Debt Management - Frequently Asked Questions (FAQs)
Here is a list of commonly asked Debt Management questions we get from time to time...
What is Debt Management?
Debt Management is an informal arrangement with your creditors that we negotiate on your behalf to reduce your monthly repayments to an amount you can afford to pay every month. We will write to your creditors asking them to accept reduced payments on your account and to stop further interest and charges from being applied.
How much do I have to pay each month?
You will be asked to pay an amount that you are able to afford. We will calculate your income and expenditure with you making sure that you have enough money to cover your day to day living expenses. The amount remaining after the deduction of household bills will be your debt management payment.
How much does the service cost?
At Curtis Faraday, we are committed to being completely open about the charges for our services. Your first monthly payment is an initial fee for setting up your Payment Plan and is not paid to your creditors. There’s a monthly fee of 15% included as part of your affordable monthly payment (subject to a minimum of £25.00).
How does a Debt Management Plan work?
As soon as we receive your first payment, we will write to your creditors to let them know we are looking after your finances. We will negotiate with them to accept reduced payments on your account and to freeze any further interest and charges from being applied. We can’t guarantee that they’ll agree straight away but we are experienced in negotiating with them and will work hard to get the arrangements in place as soon as possible.
Will a debt management plan affect my credit rating?
Yes, your credit rating will be affected. Credit reference agencies such as Experian, Equifax and Call Credit maintain records of your credit accounts. Failure to maintain contractual payments towards any debts will result in a default notice being made on your credit file. These notices will remain on your credit file for 6 years (unless the creditor agrees to remove them prior to this) and may affect your ability to obtain credit.
A debt management plan will result in you not making the contractual repayments on your unsecured debts therefore, you should expect that your credit rating will be adversely affected in the medium to long term. However, your credit rating may have already been affected if you have missed or made late payments.
How will my creditors get paid?
We will pay your creditors on your behalf every month and we will send you a statement showing the payments we have made on your behalf.
How long will the Debt Management Plan last?
The length of your plan will vary depending on your circumstances your debt amount and how much you can afford to pay each month. If your creditors freeze future interest and charges, the length of the plan will be dramatically reduced.
Is it a loan?
No, a debt management plan is a way to help manage your debts. A Debt Management Company doesn't buy the debt from your original creditors nor do they give you money to cover your existing debts. Curtis Faraday will help you to manage your debts by offering a reduced payment to each of your creditors and then negotiate to freeze interest and charges.
What if my circumstances change during the Plan?
If your circumstances change at any point during the plan, please let us know immediately. Depending on your circumstances a revised repayment plan will be negotiated with your creditors. As a matter of course, we will annually review your plan with you and amend your monthly payment if necessary.
Can you deal with all my debts?
We can deal with your unsecured debts, such as credit cards, personal loans, overdrafts, store cards, catalogues etc. We will make sure that you have enough money to pay your day-to-day living expenses and your mortgage or rent, as well as any HP agreements or secured loans you may have.
Do I need to be a home owner?
No, we can help you if you are a home owner, rent or even live at home with your parents.
What if I have a bad credit rating including Defaults and CCJ’s?
We specialise in helping people with a bad credit history and we can even help you to negotiate reduced payments on any existing CCJ’s you may have. We also have a team of specialists who can assist you if any of your creditors decide to take further action against you.
Do I have to tell my partner?
No, you don’t have to tell your partner and we will not discuss your account with anyone else unless you give us written authorisation to do so. However, it sometimes helps to talk to your partner about your debts and it can help to ease the burden.
If you have any further questions or require advice then please contact us on
0845 094 3725
or alternatively, fill in the form on the right and we can contact you!
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0845 094 3725
