Debt Management FAQs

1. Can I use my Debt Management Plan for all my creditors?
2. Will my creditors accept this plan?
3. How much will i pay towards my Debt Management Plan?
4. How do I know that my debts are being paid?
5. How long will I have to make payments for?
6. Is a debt management plan another loan?
7. Will it damage my credit rating?
8. What if my financial circumstances change?
9. Will I ever be able to clear my debts?
10. Will you need to check my credit history?
11. What if I cannot pay my monthly amount?
12. I have CCJS, can I do a Debt Management Plan?

Answers

1. Can I use my Debt Management Plan for all my creditors?

   For the most part your Debt Management Plan will be able to include most of your existing creditors. However there are some debts which cannot be included. These are known as 'priority debts' and include council tax and mortgage repayments. 

2. Will my creditors accept this plan?

   A Debt Management Plan is not a legal procedure, so All Clear Finance cannot offer a guarantee that your creditors will accept. But if the agreement is beneficial to both parties then it is likely to be accepted.

3. How much will i pay towards my Debt Management Plan?

   The amount that you will pay for your Debt Management Plan is dependant on your financial circumstances. All Clear Finance will organise a payment plan for you which has been based on your earnings and expenditure.

4. How do I know that my debts are being paid?

   We will proportion your monthly payment based on how much each creditor is owed. We will send you a statement which shows how much each creditor will be issued, and from then on you will receive a quarterly statement showing all the transactions that have been made from All Clear Finance.

5. How long will I have to make payments for?

   You will have to continue to make payments to your Debt Management Plan until all your debts have been repaid in full.

6. Is a debt management plan another loan?

   A Debt Management Plan is not the same as a loan. It is a way of consolidating your repayments into one affordable payment without further borrowing.

7. Will it damage my credit rating?

   You will be breaking the initial Terms and Conditions with your creditors if you choose to go onto a Debt Management Plan. This will have an adverse affect on your credit record.

   But it is important to remember that if you have already been missing payments then your credit rating will already be poor. 

8. What if my financial circumstances change?

   A Debt Management Plan is a flexible agreement, so we will be able to alter you plan if your circumstances change.

9. Will I ever be able to clear my debts?

   You will be paying your debts over a much longer period. It is important to remember that a debt management plan will alleviate your monthly payments so that you do not have to struggle. 

10. Will you need to check my credit history?

    No, as we are not lending you any money we will not need to credit check you.
    

11. What if I cannot pay my monthly amount?

    If you cannot pay your monthly amount then it is likely that your creditors will no longer wish to continue to support you on your Debt Management Plan.

    If you find that you are struggling to make your payments then please contact All Clear Finance as soon as possible and we will be able to help you.

12. I have CCJS, can I do a Debt Management Plan?

    Yes, you will be able to get a Debt Management Plan if you have any existing CCJ’s. Contact us today on 0800 048 1762 for more information.