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Debt Management FAQs

Q. Will the client be taking out a new loan to clear their debts?
A. No. A Debt Management Plan is a way of helping the client make affordable payments to their existing creditors. The Debt Advisor Ltd cannot provide the clients with a loan.

Q. Who will look after the clients' account?
A.Your client will have their own 'Personal Debt Advisor' who will be there to aid and assist the client for the life of the debt management plan. The clients' PDA will be fully trained in all aspects of debt assistance and will be happy to answer any questions they may have during the plan.

Q. Will The Debt Advisor be dealing with every company the client owes money to?
A. We will ensure the client’s priority debts are properly provided for including mortgage, utilities, etc Also special provision needs to be made for tax debts and if there are serious arrears to HMR & C – an IVA may be a better alternative.

Q. Will the clients' creditors/lenders definitely accept the proposed plan?
A. Creditors don’t have to accept the clients proposals, but most are willing to accept them if the payment offered is the maximum affordable. Please note that there is no guarantee that existing or threatened proceedings will be suspended or withdrawn. The clients' creditors may also continue to issue default notices and add additional costs to the debt. The client can rest assured that we will do all we can to ensure their creditors understand the difficulties they are in, to ensure the best possible outcome.

Q. Will the client have to pay for longer due to the reduced payments involved?
A. This is possible; however, the payments will be affordable every month. In addition to this, every effort will be made to encourage the clients' creditors to freeze interest and other charges to ensure the debt reduces as quickly as possible. Should the clients' circumstances improve; the plan can be amended to speed things up. Please note that if creditors refuse to freeze interest, paying the same debt over a longer period of time will increase the total amount to be paid.

Q. Why do we charge fees?
A. The clients are paying for an efficient , professional and caring service. We have a proven track record at getting people out of debt.

Q. When will the debt management plan be reviewed?
A. Plans are reviewed every six months. The reviews take into account any changes in the clients' circumstances and if there are any changes in between reviews, if necessary we will negotiate a new affordable repayment plan.

Q. How long will the debt management plan last?
A. Each plan is individual to each customer's financial circumstances. Due to the fact the clients are paying less than the original contracted payment to each creditor, the term to repay the debt will be longer but the repayments are more affordable.