Frequently Asked Questions
What is a Debt Management Plan?
A Debt Management Plan is an informal agreement between you and your creditors that is arranged by us. Firstly, we will look at how much you owe to all your creditors, we will take details of your household income and expenditure, then work out how much you can realistically afford to repay to your creditors. Make the revised monthly payment Pure Financial Management, which we then distribute fairly to your creditors.
How much will I need to pay?
It depends on your household income and expenditure. We will discuss your income and expenditure and complete a draft statement from the information that you have provided.
How long do I need to make these payments for?
It is crucial that you maintain your monthly payments to the Management Plan until your creditors have been repaid, due to the reduced payment levels, this will be longer than the terms of original contractual agreements, or your circumstances change which enable you to make alternative arrangements with your creditors. This is because your creditors may cancel the agreements that we have arranged. We will review your financial situation every six months during the course of your Management Plan.
Does it matter if I am a homeowner or tenant?
No. We will discuss with you all your household income and expenditure.
I live with my parents, can I still do a Debt Management Plan?
Yes. We will discuss with you all your household income and expenditure.
Do I have to tell my partner?
You only have to tell your partner if you have joint debts and/or you need your partner’s income to be included in the management plan.
Do I have to be in full time employment?
No. In order for the Management Plan to be accepted you need to have a surplus of income after you have allowed for all your household expenditure.
Is this a loan?
No. Your Management Plan is a repayment plan that allows you to repay your creditors in one manageable payment each month. If you do not make payments into the plan, we cannot make payments to your creditors, and therefore your creditors may cancel the arrangements we have set up.
Am I credit checked before the plan is accepted?
No. Because we are not lending you any money.
Will my creditors accept the Debt Management Plan?
Because we have good professional relationship with the creditors, most of them will agree to a realistic payment plan, that is both fair to you and them. We do request the creditors to freeze the interest and charges on the account, they are not legally obliged to, the same applies to any repayment proposals. However most of the creditors do accept them providing we can show to them that it is beneficial for them.
I have CCJs against me, can I include these?
Yes. You can make payments against any existing CCJs that you have. Please ensure that you let us know of any existing CCJ’s against you, or and pending legal proceedings, including Default Notices. There is no guarantee that any pending legal action will be suspended. One of our Legal Executives will ensure that you receive the best advice on any legal aspect that you may have.
Does a Debt Management Plan affect my credit rating ?
Your credit rating may be affected because you will be breaking the contractual terms of your credit agreement with your creditors. Your management plan may take between 4-8 weeks to set up therefore there maybe a delay in distributing the first payment and the contractual repayments to your creditors maybe missed.
How do I know my debts are being paid ?
Once we have received up to date balances from your creditors, your monthly payments between them is pre-portioned based on how much each creditor is owed. We will produce a statement showing how much each creditor will receive. This will remain the same unless your circumstances change. You will be issued a monthly statement showing all transactions on your account.
