If you are in financial difficulty and struggle to make contractual payments to
the lenders you owe money, a debt management plan is an informal arrangement put
in place to help manage your debts.
Regain financial control
A debtsmart debt management plan helps you regain financial
control, by reducing your monthly payments without taking out another loan.
With debtsmart, you will have a dedicated Financial Solutions Advisor
who will guide you through the plan, provide practical assistance and a straight
forward solution to repaying your unsecured debts.
An intelligent debt solution, not just another loan
debtsmart helps you manage your debts, we don't buy
the debt from your original creditors, nor do we lend you more money.
Your Financial Solutions Advisor will negotiate a lower payment
with your creditors and will try to get them to freeze or reduce interest and charges.
We will also investigate whether you have been
mis-sold Payment Protection Insurance(PPI) which may have been added to
your loans or credit cards. Claiming back mis-sold PPI and interest on this can
substantially reduce your debt. For mis-sold PPI, we claim back an average of £3000
for each loan and £800 for each credit card. We also request that all unfair credit
card charges are refunded.
Specific to you
A debtsmart debt management plan is tailored to your specific needs;
a detailed assessment of your income and expenditure will be carried out, to calculate
what you can afford to pay your creditors each month.
debtsmart takes the stress off your shoulders
With a debtsmart debt management plan , all letters
and phone calls from your creditors can be dealt with by your Financial Solutions
advisor, taking away the stress and worry this can cause.
Rather than you paying numerous debts each month, the
debtsmart plan comprises of one affordable monthly payment distributed to
your creditors on your behalf.
The cost of a debtsmart debt management plan
To cover the cost of setting up a debtsmart debt management plan
and contacting your creditors, we will take the first two monthly payments on
your plan. We will start paying your creditors from the third monthly payment received.
Your creditors will receive 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 10% 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.
Benefits
- peace of mind, with your financial solutions advisor working on
your behalf, you can free up time to enjoy life
- one regular monthly payment will help you budget and regain financial control
- negotiations with your creditors can freeze interest and charges on your debts
- unfair charges such as mis-sold PPI can be claimed back
for you
- if you stay on the plan and do not incur further credit your debt will be repaid