Debt Management Plans - Frequently Asked Questions

Once I decide to go ahead, what happens next?

As soon as we receive your Letter of Authority (LOA), we will inform all of your creditors in writing that you have engaged our services and given us permission to act on your behalf. It typically takes them one month to respond to this.

What happens once my creditors have responded?

By the time your creditors have responded to us, we will have put together a case which demonstrates how you came to be in the position you are in and why you can no longer afford to meet your repayments. We then negotiate reduced payment terms with each creditor. This is where you are protected by our money back gurantee

What if they do not agree?

We rightly have a reputation of being very thorough in what we do. If any of your creditors are reluctant to agree to your new repayments, we will be able to provide evidence to back up your position. Most disagreements stem from misunderstandings which can be easily ironed out.

Will my creditors stop calling me?

Once your plan is agreed, your creditors will stop chasing you for payment. However, you will be called by all of your creditors whilst we are in the process of agreeing your repayments. This is simply due to the one month delay in responding to the LOA we send them.

How does this affect my credit rating?

We believe in straight talking. If you need our services, it is too late to worry about your credit rating as you will already be at the stage where you cannot afford your minimum repayments. Missing payments is detrimental to your credit rating this will deteriorate for as long as you cannot afford them. Once your Debt Management Plan is agreed, your repayment credit rating of 0-9 will be replaced by AP which shows anyone looking at your credit file that you have an Agreed Plan in place.

How long will my Debt Management Plan last?

In theory, your Debt Managment Plan could run until your debts are all repaid. This duration varies depending on your debt level and your repayment amount. For the vast majority of our clients, the plan is simply a temporary arrangement they use until such times as their circumstances have improved. Most plans run for about two years.

What are your fees?

Our fees are included in your new reduced monthly payment. You will never have to pay anything above that. Our standard fees incorporate your first two monthly payments (the months where we are agreeing your repayments with your creditors) followed by a monthly management fee of 17.5% (subject to a £35 minimum and a £100 maximum).

Any more questions?

Call us on 0141 348 7900 if you would like to know anything else about our sevice.

Peace of Mind Group DM LLP Registration number OC359829 Registered address:
Montague Place,Quayside,Chatham Maritime,Chatham,Kent ME4 4QU