Debt Management

• Will you be giving me a loan to pay my debts off?
• Will it take me longer to pay off my debts?
• How much do you charge?
• Will my creditors accept the plan?
• Can I stop my Debt Management Plan?
• Are you dealing with all of my debt?
• Will I still receive letters from my creditors?
• Will my credit rating be affected?
• Are you members of a regulatory body?

Will you be giving me a loan to pay my debts off?
No, we do not give loans. You will be on a Debt Management Plan where we will be managing your debts on your behalf at an affordable repayment level based on your affordability. No Debt Now will administer and manage the plan on your behalf.

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Will it take me longer to pay off my debts?
You will be making reduced payments towards your debts meaning that you will be repaying the debt over a longer period of time and may lead to an increase in amount to be repaid. However you will be paying an affordable amount each month and your Debt Management Plan is flexible so you can increase your payments at any time to repay your debts sooner. We also negotiate to have interest and charges frozen or reduced. Whilst this cannot be guaranteed, it is something our account managers do constantly and as a result have developed good working relationships with your creditors.

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How much do you charge?
We charge your first two monthly payments plus an ongoing monthly management fee of 17.5% subject to a minimum of £30 (for payments below £100) and £35 for payments between £101 and £200). These fees cover the set up and administration of your account including the ongoing negotiations with each of your creditors both in writing and by telephone. Your creditors will not receive payments for up to two months from the start of your programme.

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You have a 7 day cooling off period, so if you decide for whatever reason to withdraw from your Debt Management Plan within 7 days of signing the letter of authority we will refund your initial payment.

Upon completion of your Debt Management Plan, the last 6 months’ management fees will be refunded to you.

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Will my creditors accept the plan?
Your creditors are not obliged to accept the offers of payment or freeze interest and charges but due to our experience and relationships with them, most will welcome a reasonable offer of repayment. Because we cannot guarantee the freezing of interest and charges, you may be repaying your debt over a longer period of time and this may lead to an increase in the total amount repaid.

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Can I stop my Debt Management Plan?
Yes you can. You are not tied in to a contract.

Please bear in mind that when you stop your Debt Management Plan we will inform your creditors of this. Your creditors will contact you directly for repayment of your debt and may continue with further action unless payments are made.

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Are you dealing with all of my debt?
We can only deal with your unsecured debts like personal loans, credit or store cards and catalogues etc. Your advisor will make sure you have enough money available when going through your income and expenditure to pay your priority debts like Mortgage, Rent, Hire Purchase agreements and utility bills. You must make sure that your payments to these debts are kept up to date as falling behind with priority debts may put you at risk of losing your home.

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Will I still receive letters from my creditors?
You will receive your monthly statements from your creditors showing payments received and you may receive other correspondence from creditors stating further action. Your creditors are within their rights to continue with action even though you are on a plan but as long as you forward all correspondence to your Personal Account Manager they will do their upmost and use their experience to deal with these on your behalf.

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Will my credit rating be affected?
Your plan will not directly affect your credit rating however if you are behind with payments or have missed payments it is likely that your creditors have already recorded this with credit reference agencies.

Your creditors are likely to issue a default notice to register the fact that your original agreement with them has not been maintained.

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Are you members of a regulatory body?
No Debt Now are members of the Debt Managers Standards Association (DEMSA). As members we fully subscribe to the DEMSA Code of Conduct. The main aim of the DEMSA code is to ensure debt management companies provide the highest services and standards, which the public and the credit industry can be confident in.

Their contact details are: DEMSA, West Point, Westland Square, Leeds, LS11 5SS. www.demsa.co.uk

If you have a complaint you should contact your Personal Account Manager in the first instance.

You can find our complaints procedure and privacy policy on our website, www.nodebtnow.co.uk

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