F.A.Q.
FREQUENTLY ASKED QUESTIONS ABOUT DEBT MANAGEMENT, NEGOTIATION, COUNSELLING AND REPAYMENT PROGRAMMES
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What is debt management, and how can it help me?
A Debt management programme enables you to consolidate your credit commitments into one affordable monthly repayment. This amount is then paid to the debt management company who in turn distribute the payment between your credit companies. |
Will my creditors accept the reduced repayment arrangement?
Creditors are not obliged to reduce payments or to freeze interest; these issues are negotiable and should not be viewed as a right. In most cases, the credit institutions welcome our clients dealing with their problems and are open to the reduced repayments.
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What about my future credit rating?
It is important to note that by entering a Debt Management Plan, your ability to obtain further credit may be affected. However, handling the debt must be the priority. The process relies heavily on your payments being made consistently. This will help build a payment history that will in turn build and repair your credit rating. |
What happens to my credit rating?
Your credit rating may be affected if it has not already; however, since you are already experiencing problems maintaining payments, doing nothing will most likely affect your credit rating anyway. When your plan has been completed, we will provide you with a formal letter to confirm that all your debts are satisfied. The payment history you build with us will be a valuable recommendation later.
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Are there any debts that I can’t include?
You can normally include any unsecured debts in your management plan. This rules out your mortgage, any loans secured on your home, and hire purchase debt. We will however advise you in the best way to deal with these debts if they become an issue. |
Are your services confidential?
We fully appreciate the sensitive, personal nature of the information we hold and we pride ourselves in our extensive procedures aimed at safeguarding your confidentiality.
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What if my circumstances should change?
You may request a review of your payment amount at any time should your circumstances change. |
What are the Fees Involved?
Our initial consultation and advice are free of charge. Professional fees are charged for clients who engage a debt management programme.
For setting up and negotiating your plan, an initial Fee equal to 1 month’s affordable repayment, subject to a minimum of €500 plus VAT@21.5% and a maximum of €800.00 plus VAT@21.5% will be retained from your initial payment(s).
For the ongoing management and review of your plan, a monthly fee equal to 10% of your monthly agreed affordable repayment will be charged, subject to a minimum fee of €25.00 plus VAT@21.5% and a maximum fee of €70.00 plus VAT@21.5%. Please note that VAT is payable on all professional fees, however Debt Plan Ireland is currently lobbying the Revenue to have a VAT exemption placed on this type of activity.
1800 42 42 42info@debtplan.ie
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