The initial fee paid by you, covers the cost of setting up your debtsmart plan and employing a dedicated Financial Solutions Advisor on your behalf, who will:

• review your financial circumstances
• renegotiate monthly payments with your creditors
• negotiate with your creditors to request they stop charges and freeze interest being charged
• send you a debtsmart payment plan, explaining how much your monthly payment will be and how much is sent to each creditor

Because the initial fee doesn't go towards your debts, you will go further into arrears for the first two months.

Don't worry; you will start repaying your unsecured debts with your next payment.

What iSmart Consumer Solutions charge for this service

We will take the first two monthly payments on your plan to cover the cost of setting up your plan and contacting your creditors. The fees will also involve establishing any outstanding amounts of debt, negotiation with your creditors on freezing the interest and also the negotiation with your creditors on setting up the plan.

We will start paying your creditors from the third monthly payment received. Your creditors will receive a payment from us within five working days of receipt of your payment to us. From the third month we will charge a monthly fee equivalent to 15% (min £30) of your monthly payment. This covers the ongoing costs of administering your plan.

You are free to leave the plan at any time and there will be no charge to do so. We do ask, however, that you give us two weeks notice in writing. This will enable us to contact your creditors to ensure smooth return of your financial affairs back to you.

New customers are entitled to a 14 day cool off period where a full refund will be given if you decide a debt management plan is not the right path for you.

The monthly fee covers the ongoing work required to keep your debt management plan running smoothly. This includes:

• continuing to employ your Financial Solutions Advisor who will be there every step of the way and can be contacted at any time
• distributing the agreed monthly payment to each of your creditors
• dealing with all phone calls and letters from your creditors
• sending you a statement each month, listing the repayments made to your creditors
• carrying out a review of your financial circumstances every six months and renegotiating with your creditors if required
• sending you a yearly statement showing payments made to date and balance outstanding

Insolvency Service Guide