How much will I need to pay into a DMP?

Payments are based on individual circumstance. We will review your income and expenditure with you to work out an affordable payment amount. This will take into account essential monthly costs such as food, mortgage and utility bills.

How long does a Debt Management Plan last?

A Debt Management Plan lasts for as long as it takes you to pay back the debt you owe. Although we do ask your creditors to freeze any interest on your debt, they are not obliged to do so. If your creditors refuse to freeze interest, paying the same debt at lower repayment levels over a longer period of time will increase the total amount to be paid. It is also important to note that as your Debt Management payments will be lower than what your creditors originally required on a monthly basis, it will take you longer to repay them.

How do I know my debts are being paid?

We distribute your monthly payment to your creditors within five days of receiving your payment from you. We will provide a monthly statement to you showing the payments made to your creditors.

Do my creditors need to accept my proposed debt management plan?

Although creditors and lenders do not have to accept any Debt Management proposals put to them, most are willing to if we can show that the offer is reasonable and that you are seen to be committed to repaying your debts through the DMP proposed. There is no guarantee that your creditors will suspend any existing or threatened legal proceedings and they may continue to add additional costs to your debt. Most creditors are willing to discuss the possibility of freezing the interest and charges on your debts.

Is this a loan?

A Debt Management Plan is not a loan. It is a debt solution that will allow you to repay your debt at a monthly rate you can afford. We are not able to provide you with a loan.

Will you be dealing with all of my creditors?

Only unsecured debts can be included in a DMP. Secured and priority debts need to be dealt by you. These payments are taken into consideration when calculating the amount you can pay to your DMP each month.

What happens if my circumstances change?

It is important that you contact us immediately if your circumstances change so that we can review your position and either adjust your monthly payments or identify an alternative debt solution that is more suitable to your circumstances.

Does it make a difference if I am a homeowner or tenant?

No. It makes no difference whether you are a homeowner or tenant.

Will I receive Default Notices from my creditors?

As Creditors send out Default Notices to protect their own legal position, it is likely that you will receive default notices from them.

Can I keep one of my credit cards for emergencies and not include it into my plan

No. It’s important that when you enter into a debt solution, you refrain from taking out further credit and that all unsecured debts are included in your plan.

Will my home be at risk if I enter a DMP?

Entering a Debt Management Plan does not put your home at risk but you have to ensure that your priority debts are maintained to avoid your home being at risk.

Where is my money held until it is distributed to my creditors?

All monies received by us for distribution to creditors are held in a separate, non- interest bearing client account with our bank

Should I continue to make payments to my creditors?

If possible, you should continue to make payments to your creditors until your debt management plan has been set up.

 

Your Next Step:

Careful consideration should be taken before choosing any debt solution. Debt Advisory Services (Scotland) Limited only recommends appropriate debt solutions after we have conducted a full review of your personal financial circumstances.
Our Financial Review Service is completely free and there is no commitment for you to action any of the solutions that we recommend to help you deal with your financial problems.

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