FAQ's
What is debt management?
A debt management plan is an informal agreement designed to allow someone who is struggling to meet their monthly repayments the opportunity to make a single more affordable monthly repayment via a debt management company. In return for a management fee the company passes these payments to the creditors until the debts are cleared. The most important part of the management companies duties should be to negotiate an interest and charges freeze on the borrowers outstanding accounts and then regularly ensure that creditors continue this freeze during the term of the plan. They should also ask creditors not to take any legal action providing the borrower keeps making their regular payments. Amongst other duties the management company should also agree to handle/reply to creditors letters and enquires. Enquire Now.
Is a debt management plan a loan?
A debt management plan is not a loan. Incidentally since a management plan is not a loan you will not have to be credit checked.
Can I pay more or less if I want to change payments?
Because the plan is informal you can alter your payments to suit your circumstances. If your circumstances change you can raise or lower your payments. Enquire Now.
Will this affect my credit rating?
It is more than likely that the management plan will have an effect on your credit rating as you will not be making your contracted repayments. However, if you are seen to be making regular payments through your plan then this should have a positive effect. You should bear in mind that if you are currently experiencing debt problems it is quite possible that your credit rating is already affected.
Does it make a difference if I am a homeowner?
It makes no difference whether you are a tenant or homeowner or if you are living with your parents or friends. Enquire Now.
Does a management plan cover all of my debts?
A management plan can only cover your unsecured debts and arrears.
Do creditors always accept reduced payment offers?
Creditors do not have to accept any offer of repayment below the contracted minimum. However, they are normally prepared to accept reduced repayment offers where you can show that the offer you are making is reasonable and that you are committed to repay your debts.
How does the LDS Service work?
Fill in our simple enquiry form today and one of our advisors will contact you to discuss how we can help you resolve your financial difficulties.
The first stage is a totally confidential and very constructive meeting (or telephone call if preferred) with Martin, Ian, Maurice or Steve, who explain the range of remedies that can be applied. Then, by completing a detailed fact find, these are narrowed down to the specific options most suitable for the individuals’ particular circumstances.
Having chosen the best route, the agreed plan is then implemented. Local Debt Solutions continues to monitor the scheme, providing a local contact until the debts are eliminated and future finance needs can re-addressed. The advantage of such a professional and confidential service is that the best route is chosen and the individuals are never pressed into heavy debt recovery plans, such as bankruptcy, which may not be in their best interests. The close relationship with the mortgage services of the Local Debt Solutions partners also ensures that full consideration is given to all possible options, until financial stability is restored, and from there on if required.
- Don't Delay
- Ring Now - 01580 755555
- for 1 to 1 advice
