To give you a better understanding of our fees and how they work, we distribute payments to your creditors from month one and evenly distribute our fees over the first 6 months which is equivalent to your first two months payment.
There is an on-going monthly management fee for running the debt management plan calculated at 17.5% of your monthly payment subject to a minimum fee of £20 per month depending on number of creditors and the complexity of your file.
Proportion of your Initial payment will cover the work that goes into setting up a debt management plan. That involves:
- Reviewing and assessing your financial circumstance
- Preparing your financial statement
- Preparing your reduced repayment proposals
- Talking to your creditors − renegotiating your monthly debt repayments
- Negotiating the freezing or reduction of additional interest and charges
The monthly management fee covers the on-going work involved in keeping your debt management plan running smoothly. This includes:
- Collecting your monthly payments
- Making the agreed monthly payments to each of your creditors
- Answering phone calls and responding to letters from your creditors
- Dealing with debt collection companies
- Creating the detailed payment statement which you will receive every quarter
- Carrying out a financial review of your circumstances at least once a year (or as often as your circumstance changes)
It also pays for your debt management services − throughout the Debt Management Plan you will have access to experience advisors who will be there to answer your questions, give you guidance and help you solve any problems.
If you feel you cannot afford your monthly payments any more, talk to us we can re−assess your circumstance and renegotiate with your creditors. Your creditors may agree to accept further reduced payments if it looks like the best way of bringing your debt management plan to a successful conclusion.
Full and Final Settlement Fees
We also offer to negotiate Full & Final settlements on behalf of our clients. Our fees are negotiable but will be approximately 10% of the saving.