Debt Management FAQ's | Debt Questions Ireland
What is a Debt Management?
A Debt management plan is a debt solution that we offer to reduce and clear all of your outstanding debts without obtaining further credit. We deal directly with your creditors and negotiate on your behalf, freezing interest and charges whenever possible.
What are the advantages of a Debt Management Plan?
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You can take control of your debts without a getting another loan
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It is an Informal and flexible arrangement to suit you
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Payments are tailor made to suit your individual needs
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You can pay off your debts with one single affordable monthly payment
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There is no need for formal Insolvency Procedures
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You do not have to release equity from property
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You can reduce or freeze the interest and charges
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The agreement is preferred by creditors
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Demands and harassment from creditors will stop
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Your details will not be put on an Insolvency Register
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You can regain control of your finances
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You will repay all of your debts
What debts are covered by Debt Management?
Debt Management can deal with all your unsecured debts such as: loans, credit cards, store cards and bank overdrafts. If you have secured debts such as your mortgage or HP agreements we will ensure these outgoings are prioritised in your income and expenditure calculation, so you do not fall behind on payments. We will always suggest ways to deal with your secured and priority debts.
How much will I have to pay if I enter into a Debt Management Plan?
This will depend upon your income, expenditure and personal circumstances. You will only pay what you can realistically afford. Each person’s income and expenditure is individual so we work each case out individually. When we work out your affordable monthly payment the amount is then paid each month by standing order.
Do I have to be employed?
No, but you do need a source of income that is more than you require for living expenses.
Will the Creditors accept my Debt Management Plan offer?
Debt Advice Ireland are extremely successful at negotiating with creditors and have a proven track record of getting offers accepted. However because a DMP is not a legally binding agreement a creditor does not have to accept a reduced payment or freeze interest and charges on your debt. Each case is individual and there is also no guarantee that any existing or threatened proceedings will be suspended or withdrawn. Debt Advice Ireland endeavor to get you the lowest payment plan possible and reduce your debts where possible.
Will my employer find out I am on a Debt Management Plan?
No, Debt Advice Ireland offers a complete guarantee of confidentiality and privacy in relation to your financial affairs. We will never disclose any information about you to any outside organisations and will never say who we are when we call you. This means that you can feel safe in providing your contact information, without the worry that others will find out that you are seeking our help.
Will a Debt Management Plan affect my credit rating?
Yes. As we negotiate a reduction in your monthly payments, and you are no longer repaying the agreed amount to your creditors, a note of this may be made on your credit report. If you currently have arrears or a history of missed payments or late payments your credit rating will already be affected. Records are retained by the credit reference agency for 6 years.
How long will a Debt Management Plan last?
The length of a DMP depends on your own personal circumstances. Once we have gathered all your personal information and figure out how much you have to pay back and how much you can afford we will be able to estimate the length of the arrangement.
What if I have a change in circumstances?
A Debt Management Plan is flexible and informal. If you have a change in circumstances this may make your repayments easier if you can pay off more of your debt or if you find you are still struggling this will also be looked at. Once you start a DMP you will be assigned a Personal Finance Manager who will deal with your case and any changes in circumstances that may occur.
If you have any questions about setting up a Debt Management Plan or the other debt solutions contact us on:
Email: help@debt-advice.ie
Telephone: 1890 719 465
If you would like to apply for a Debt Management Plan click here |
