Debt questions we're frequently asked

If you're considering a debt management plan to sort out your debt problems, you will probably have some questions. If yours aren’t answered here, simply call us free on 0800 043 4747.

How much will I have to pay?

You decide, with our advice, on a single affordable monthly payment.

What do you do as a company?

We negotiate with your creditors to reduce your monthly payment and request them to freeze or reduce their interest charges. We will collect one single monthly payment from you and pay your creditors on your behalf. This will make managing your debts far simpler.

How do I know I’m getting the best advice for my situation?

We operate a ‘best advice’ protocol, meaning that we ensure the advice given is in the interest of the client and not ourselves. In addition, Debt1 are licensed by the Office of Fair Trading under the 1974 Consumer Credit Act and as such, any advice we give must be ethical and professional. We are also covered by the Data protection Act to ensure that your data is kept confidential.

What about my household bills?

Your monthly expenditure is to be maintained by you. If you are struggling to meet mortgage, rent, hire purchase, secured loans or bill payments, you must pay these before paying any amount to us. Keep us informed at every stage so that we can advise you on your situation.

What if I already have a CCJ?
You need to maintain the CCJ payments that you have agreed with the courts until we advise you to stop. We can then apply to the courts with our offer to get an amended arrangement in place.

How do I know my debts are being paid?

Once we receive up to date balances from your creditors, we will apportion your monthly payment between them based on how much each one is owed. We will issue a statement showing how much each creditor will receive. This will remain fixed unless your circumstances change. We will also issue a monthly statement showing all transactions on your account. In addition to this, you will still receive statements from your creditors.

What is the charge for this service?

As stated earlier you will only pay an affordable monthly amount. Included within this amount will be a 17.5% distribution or management charge. As most of our work will be carried out at the start of your plan, we will retain the amount equaling one monthly payment to cover this cost, and this will be the first payment you make to us.

Will this affect my credit rating?

Missing payments and making reduced payments are likely to be recorded on your credit file, resulting in a lower credit score. Since you are currently experiencing problems paying your debts it is possible that one or more of your creditors has already recorded adverse findings against you. We will ensure a regular monthly payment is made to each of your creditors.

How soon will interest be frozen?

Once we have compiled accurate information for your financial statement we will make a case to the creditors about your situation. It will be at their discretion whether they freeze or reduce the interest and they may make requests for further information. At every stage we will keep you informed of what your best options are and what level of payment is appropriate for you.

If you have any other questions about dealing with your debts, just give us a call now!