Apply for debt management
- Leave dealing with your unsecured lenders to us... any secured debts, like your mortgage, won't be included.
- Repay your debts at a rate you can afford... although smaller repayments may take longer to repay your debt, cost you more in the long run and affect your credit rating.
- Receive help and support from a dedicated Personal Finance Team
How do I apply for a debt management plan?
It's really simple to apply for debt management with us - most of it can be done over the phone. Just call us, or request a call back from one of our advisers to begin your application.
The Application Process
We assess your financial situation over the phone, to see what solutions are available to you – and whether Debt Management could help. If it is the right solution, we ask for an initial payment, based on the 'surplus income' amount from the details you gave us about your finances.
Once you have made your first payment, our service can begin and you are appointed a dedicated Personal Finance Team.
We cannot contact your lenders until we have your authority to do so. You will need to sign a document giving us the authority to take over all negotiations (we send this document to you and you can send it back in a pre-paid envelope). Once we have received that, we can begin negotiating with your lenders by making repayment offers on your behalf.
Your lenders are not forced to accept the offer we make on your behalf. But many do, as they'd prefer to get lower repayments regularly than risk getting nothing at all.
We'll also need your reference numbers for each of your unsecured debts, as well as proof of your income. These documents help us to negotiate with your lenders.
If you change your mind, we won't charge you anything if you cancel within the initial fourteen-day cooling-off period after paying your first fee - and you would be entitled to a full refund of any fee paid. If any money has been paid to your lenders this will not be refunded.
We'll keep you updated on what's happening throughout your time with us, and you can speak to a member of your Personal Finance Team if you have any questions.
How do I know if I qualify?
If you've fallen behind with unsecured debt repayments, one of our debt solutions may be the right option. It doesn't matter how much unsecured debt you have, or how many lenders you have - we try to help anybody in debt who needs help. It's worth remembering that only unsecured debts would be covered by any debt management plan. Any secured debt you have, such as a mortgage, won't be covered and you'll have to keep making payments on this seperately.
Generally, you could qualify for debt management if you can't manage your repayments at the moment, but could still repay your debts within a reasonable amount of time with lower repayments. Bear in mind that lowering your repayments will extend the amount of time it takes you to repay what you borrowed. It may also mean you end up paying more in the long run, and, because your credit rating will be affected, it may be more difficult or more expensive for you to get credit for up to six years.
If a debt management plan is no longer suitable for you, we might offer you another debt solution instead, such as insolvency.
One of our advisers will be able to tell you more based on your circumstances. You can request a free call-back with this form.
What happens next?
Once your debt management plan is set up, you shouldn't have to speak to your lenders anymore - we do that for you.
They may contact you, but you can send any post they send you onto us, and we'll provide prepaid envelopes so that you can do that for free.
You make your regular payment(s) each month to us and we handle the rest, making sure each of your lenders receives a regular repayment based on the deal we negotiated, and a percentage of your payment is our management fee. If everything goes to plan, your lenders will usually put any other legal action or debt collection action on hold. They may also agree to freeze interest and charges, although they're not obliged to
However, things can change, so we review your repayments every six to twelve months to make sure they're still affordable - and you can request a review at any time.
You stay on the plan until you've cleared your debts in full. We have helped lots of people to repay their debts this way and make a fresh start.
Visit our Help Centre for more information about debt management and answers to more frequently asked questions, or speak to one of our advisers if you can't find the answer you're looking for.