Debt Management FAQ

Making sure you are fully informed from the start is vital when deciding on any debt solution. Here are some of the most common questions we hear – If your question is not here, call our staff on 0800 072 662.

 

“Isn’t a Debt Management Plan and debt consolidation the same thing?”

A Debt Management Plan is a way to repay your debt without taking out further credit like a loan to consolidate several debts. If you are already overcommitted taking out further credit is not advisable. We would look at your income and expenditure and work out a reduced repayment plan with all your creditors to ensure all are paid at amounts you can realistically afford.

 

“How much will I have to pay towards my debt management plan?”

The idea of a debt management plan is that it is affordable given your circumstances. InControl will conduct a full assessment of your situation and ensure that all your essential living expenses are accounted for, the remaining amount will be the amount applied to your debts. See our minimum requirements under What is a Debt Management Plan?

 

“Will I have enough money to pay my essential expenses?”

Yes, repaying your debts is only part of it. Together we will ensure we work out a budget for you when assessing your circumstances ensuring everything you need is accounted for.

 

“How long will it take me to clear my debts on a Debt Management Plan?”

Paying your debts under a Debt Management Plan will mean your creditors accept reduced payments so it will take you longer to repay your debts in full. However if your circumstances improve we can increase your payments and this will reduce your overall repayment term. We no longer offer debt management if the term of your plan is projected to exceed 10 years, unless there is the potential for your circumstances to improve, reducing the term to below 10 years.

 

“What are the fees for a Debt Management Plan?”

Our fees are amongst the lowest in our sector and are explained fully here.

 

“How do I know you will give me the best advice?”

We pride ourselves on our personal service and finding the right solution for you. Our advice is obligation free and even if we cannot help we will ensure you feel confident and have the tools to get the right help and advice you need.

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InControl only offer plans which are compliant with the Debt Management Protocol which is a set of rules giving extra protections and assurances to consumers who use fee charging debt solutions companies.

We are also proud members of DEMSA which was set up in 2000 to promote good practice in the debt management industry.DEMSA-MEMBER-logo-COLOUR

 

 

 

“Can you deal with ALL my debts?”

We can generally deal with all unsecured debts (including some CCJ’s and Bailiff debts). In some circumstances we can deal with council tax and utilities. Following a full financial assessment we will be able to advise the best course of action for any debt that we are unable to deal with. Secured debts cannot be added to a Debt Management Plan.

 

“Can I put a CCJ on a Debt Management Plan?”

Yes, but it is vital that you inform us straight away and are completely honest about the situation. Our advice and support will be of most benefit to you if we have the complete picture.

 

“Will my creditors accept a reduced payment plan?”

Creditors do not have to accept reduced payment arrangements, but in most cases it is in the best interest for the creditor and for you. Seeking professional representation will also show your creditors you are committed to sorting out your finances, whilst being able to step back from trying to arrange multiple creditors yourself.

 

“How do I know my debts are being paid?”

You will receive a receipt (by post or email) every month detailing who we have paid and how much we have paid them. In addition you may also receive statements directly from your creditors detailing payments made.

 

“Surely I can make arrangements direct with my creditors?”

Yes you can, but as mentioned above creditors do not have to accept these arrangements. If you have a few creditors this can became very time consuming trying to maintain all your arrangements. Creditors can be very demanding trying to encourage you to increase payments and if payments are missed dealing with the fall out can be extremely stressful. We have years of experience and a wealth of knowledge when dealing with your creditors. Our aim is to relieve the stress and financial burden leaving you to focus on other areas of your life.

 

“Do I have to be working full time to be suitable for a Debt Management Plan?”

Providing you have a disposable income of £80 (use our handy disposable income calculator) or more and can sustain regular payments we can look at your suitability to a Debt Management Plan. Do not worry if you can’t afford at least £80 – there may still be alternative services which can help you.

 

“What will a Debt Management Plan do to my credit file?”

Even if your creditors accept reduced payments you may still be in default of your original agreement which means your creditors may still issue a default notice. Late payments/missed payments will also be documented.

 

“Can I cancel my Debt Management Plan?”

Once we have received your signed paperwork, you have a 14 day cooling off period during which you may cancel the debt management plan without incurring any charges. Any funds held against your account will be refunded minus any fees due. After your 14 days cooling off period, you may end this agreement by giving us four weeks’ notice in writing. See our Terms and Conditions.