How we negotiate with your lenders

At Gregory Pennington, we have a dedicated team who deal with all contact with your unsecured lenders while you're on a debt management plan. Here are some of the day-to-day things we do:

How we deal with your creditors on a debt management plan

Once you have told us you want to go ahead with a debt management plan, we can begin contacting your lenders. If you have multiple lenders, it could be really helpful to let someone else deal with them for you.

We have an online system that most lenders we deal with can log onto, or we contact them directly. We make repayment offers and ask for all interest and charges to be frozen while you're on debt management. While your lenders are not guaranteed to accept the repayment offer, we have been working with them since 1993 and have built excellent working relationships.

With our online system, we can often reach an agreement with a lender within a matter of days - and within 24 hours in some cases.

What solutions are available?
Complete the form and our friendly advisor will call you back to discuss the best way forward.


What is a debt management proposal?

A debt management proposal is the repayment schedule that we put to your lenders when you apply for debt management. It details how much you will pay every month and for how long. We always ask lenders to freeze interest and charges as part of the proposal - which many do, although they are not guaranteed to.

We make repayment offers based on the amount you can realistically afford to repay every month, after you have paid for all the essential things you need for you and your family. However, lenders are under no obligation to accept lower repayments, and there is no guarantee that they will.

Find out more about how we work out a debt management proposal here

Would my lenders accept the proposal?

When you have multiple lenders, we need to work out how much you will repay each of them, and choose amounts that they're more likely to accept.

Your repayment proposal will have more chance of success if we choose repayment amounts that all of your lenders are happy with. The fairest way to do this is with 'pro-rata' payments.

Pro-rata payments are basically in proportion to how much you owe. We add all of your unsecured debts together to make one total debt. If one fifth of your total debt is on your credit card, then we will offer one fifth of your repayment to your credit card lender.

Secured or 'priority' debts, like a mortgage, child maintenance payments or a student loan can't be included in your plan - you'd need to stay on top of these payments yourself.

Lenders would rather receive regular, small repayments than nothing at all, so we make sure that you can comfortably afford your repayments within your budget. That way, your lenders know you are more likely to stick with your repayments, and they're more likely to accept your proposal.

Your lenders could still get in touch with you, or take legal action against you to retrieve their money. It's our job to show them it makes more sense to deal with us directly.

What If my lenders reject my debt management plan proposal?

We would only put you forward for debt management if we think you have a reasonable chance of success. However, lenders are not legally obliged to accept a debt management plan.

If a lender does reject your offer, we will speak to you and see whether you are able to offer an increased repayment. It could be that an extra £5 a month would be enough to get your plan accepted.

We will always keep negotiations open with your lenders and try to get your debt management plan in place. However, if we aren't successful, we won't abandon you!

We have other debt solutions which could help. Find out more about the alternatives to debt management here.

How do I apply for debt management?

You can begin your application on our application page and someone will call you to discuss all the different options available to you and the fees payable for each. Or, you can speak to one of our advisors when you call the number at the top of this page.

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About us

We've been helping people get out of debt for almost 20 years. Read more about what we do and the charities we support.

Read more
Fees & key info

Read more about the fees involved with each of the solutions we provide.

Download the Insolvency Service guide to dealing with creditors.

Read here for information about our Complaints Procedure and referring a complaint to the Financial Ombudsman Service.

Conditions Apply. Repaying your debt over a longer period of time can increase the total amount to be repaid. Your ability to obtain credit will be affected. Fees are payable when continuing service is provided.
Customers' stories
Mr M.D.Somerset

"Everyone I've dealt with has been practical, helpful, calm, non-judgemental and efficient. I'd recommend this service to anyone."

Ms C.I.London

"They took all the worries of dealing with phone calls and letters away from me and kept me informed of what was going where."

Mrs K.H.Norfolk

"From start to finish I felt as though I mattered. My case was dealt with care. I would definitely recommend your services."

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