Frequently Asked Questions
What if I can get a loan from my bank?
You must always have exhausted the option of borrowing to consolidate debts before entering one of our programs.
What if I owe money to my current bank?
You must open up a new bank account immediately
What do I do about paying my creditors?
Cancel all your direct debits, standing orders and payments immediately.
Do creditors always accept reduced payment offers?
Creditors do not have to accept any offer of repayment below the contracted minimum. However it is our experience that mainly they are prepared to accept reduced repayment offers where we are able to demonstrate that the offer we have made is reasonable and that you are committed to repay your debts by use of the plan.
What if my creditors continue to pursue me for repayments?
Certainly in the short term, your creditors will continue to take action to recover your debts. Do not ignore them. Deal with calls politely, informing creditors that you have appointed Immediate Finance to act on your behalf. You should forward any letters to us to deal with on your behalf.
Will I receive a Default Notice?
By coming on plan with us, you will be in default on your original credit agreement and your creditor is therefore entitled to send you a Default Notice. Creditors send out Default Notices to protect their own legal position.
Will the plan affect my credit rating?
Because taking out a plan will result in your not making the contractual repayments on your unsecured debts, you should expect that your credit rating will be adversely affected in the short to medium term. However, your credit rating may already be poor if you have arrears or a history of missed or late payments.
Will the plan prevent my creditors taking further recovery action?
We cannot guarantee that your creditors will not take further action, including court action to recover debts from you but if they do, we will help you respond so that any repayment that is required is within your ability to repay.
Can I take out a plan if I am a homeowner or tenant?
Yes. It makes no difference whether you are a tenant or homeowner or even if you are still living with your parents.
Can I take out a plan if I already have CCJ's against me?
Yes. You can even use the plan to make payments against any existing CCJ's that you have. Just make sure that we know exactly what your current situation is when you talk to us before coming on plan.
Do I have to be in full time employment?
No. To come on plan, you, only need to have a surplus of income above what you need to live on.
Do I have to tell my partner?
We believe that it is always best to be honest with your partner. However, you only have to tell your partner if you have shared debts and/or you need your partner's income to be taken into account to support the plan.
Does the Payment Plan cover all of my debts?
No. A debt repayment plan can only cover your unsecured debts and arrears.
Is this a loan?
No. We neither lend you money nor pay off your debts. Your payment plan is a solution that allows you to repay your creditors at a monthly rate that you can afford. If you do not make payments into the plan, we cannot make payments to your creditors.
What is the difference between a secured and unsecured debt?
A secured debt is a debt against an asset that you own. Typical secured debts will be a mortgage, a secured loan, a car loan, etc. An unsecured loan is any loan not secured on an asset, such as a bank overdraft, a personal loan, a credit card, store card, etc.
Will I be credit checked before acceptance?
No. since we do not lend you any money, we do not need to credit check you.
How is my money held until it is distributed to my creditors?
We hold all monies sent to us for distribution to creditors in a client account with our bankers. This means that your money is completely protected in the event of our insolvency.
How long will the plan take?
Because you are making reduced payments to your debts, it will take longer for your debts to be paid off. As part of our initial consultation with you, we will provide you with an estimate of the likely time you will be on the plan. Please understand that a Debt Management Plan is not an overnight solution but is tailor made to fit your own circumstances.
How much does the service cost?
We charge 17.62% of the distributions made to creditors. You will also pay an initial set up fee which is usually equivalent to two months payments. More details can be found at "What fees are payable under a debt management plan?"
What if my circumstances change?
Because a Debt Management Plan is an informal arrangement, it is easy to change it as your personal circumstances change, and even to replace it with an alternative arrangement if that becomes more appropriate at a later date.