FAQs
A set of frequently asked questions to help you with debt problems.
Is this a loan?
Do I need to be a homeowner?
Do I have to tell my partner?
Do I have to be in full time employment?
Can secured debts be included in the plan?
How do I know my creditors are being paid?
Do creditors always accept the reduced monthly amount?
What do I do if creditors continue to call me?
How does debt management affect my credit rating?
Will I receive a default notice?
My reduced payments are less than my interest charges; does this mean I'll be paying forever?
How do I know I'll be able to maintain the reduced monthly payments?
How long will my Plan last?
What happens if my circumstances change?
Is my home at risk?
Can I cancel my plan at any time and if so are there any cancellation charges?
Is this a loan?
No, we neither lend money nor pay off your debts for you. This is a debt repayment plan to help you make affordable monthly repayments to your creditors. We cannot pay your creditors if you do not make payments into the plan.
Do I need to be a homeowner?
No, debt-simple will provide assistance to you if you’re a tenant, homeowner or living with parents or family.
Do I have to tell my partner?
If all debts are in your name then your partner will not be informed as this will be treated as a single application. If the debts are in joint names then your partner must be informed and their consent given to help you both.
Do I have to be in full time employment?
No, as long as your surplus income is above what you need to live on, then debt-simple can help you with a debt management plan.
Can secured debts be included in the plan?
No. A debt management plan only includes your unsecured debts. Please see the ‘DEBTS WE CAN HELP WITH’ page.
How do I know my creditors are being paid?
You will receive quarterly statements from debt-simple, which will show how much you have paid into the plan and the amount that has been paid out to your creditors. You will also continue to receive statements from your creditors showing your payments to them.
Do creditors always accept the reduced monthly amount?
Creditors do not have to accept anything below the original contractual payment. However they will accept a reduced amount as long as we can demonstrate that the offer made is a reasonable amount and you are fully committed to start paying into the plan.
What do I do if creditors continue to call me?
Creditors will continue to try and recover the outstanding amounts in the short term by contacting you direct. You shouldn’t ignore their phone calls, but just reiterate that you are seeking help from debt-simple and they will now be dealing with your unsecured debts through a debt management plan.
How does debt management affect my credit rating?
If you already have a debt problem, it is likely that your credit rating has already been impaired. If you have failed to meet the original contracted terms of your credit agreement your creditors will register that you are in default. This will be recorded on your credit file and will normally be retained on your file for 6 years.
Will I receive a default notice?
By joining a debt management plan you will default on your original credit agreement with your creditor, because of this your creditor has the right to issue you with a Notice of Default.
My reduced payments are less than my interest charges; does this mean I'll be paying forever?
Creditors may freeze interest charges to help you pay your debt off quicker, because they can see that you are making a genuine effort to pay your debts and are doing so with the assistance of a professional organisation.
How do I know I'll be able to maintain the reduced monthly payments?
Any repayment proposal is agreed between you and your personal debt advisor in advance. It is based on the information you have supplied debt-simple and takes into account all your finances. So it is imperative that you include all the information asked for.
How long will my Plan last?
This will be determined by how much is owed and the amount you can realistically afford to pay your creditors each month.
You’ll be given an indication of the likely length of the plan at the outset, but it will always be dependent on your creditors freezing interest and other charges on your accounts and your circumstances not changing.
What happens if my circumstances change?
If your circumstances change whilst the plan is in place, then please contact your personal debt advisor as soon as possible. Depending on your situation a revised repayment plan can be negotiated with your creditors.
Is my home at risk?
If you’ve got a mortgage, allowance for this is made in your essential expenditure. Your personal debt advisor can determine how much you can afford to offer your unsecured creditors and you will be left with enough money to continue making your mortgage payments. Providing you do this, your home should be safe.
Can I cancel my plan at any time and if so are there any cancellation charges?
This is an informal arrangement to help you manage your debts. You can cancel at anytime by giving us at least 4 weeks notice in writing and there will not be any cancellation charges.
For free advice on the best debt solution for you contact us
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