What is a Debt Management Plan?

A Debt Management Plan is a solution for anyone that has unsecured debts that they can't afford to pay each month. We restructure all your debts into one, single, affordable, monthly payment, without you having to borrow any more money. We help you manage your debts by offering a reduced payment to your creditors and negotiate to freeze interest and charges.

Are your services confidential?

OneDebt is licensed under the consumer credit act 1974 and data protection act 1998. We understand your circumstances are personal therefore we appreciate the sensitive nature of the information we hold, so our procedures and policies ensure confidentiality.

Will you conduct a credit search before acceptance?

No, as we do not lend you money we do not need to credit check you.

What fees do I pay?

We take your first payment into the plan for administration purposes; this is used to set up your plan and to represent you in negotiations with your creditors. Every month thereafter, we will deduct 15% of your monthly payment, (minimum of £30), to manage your debts and the distribution of funds to your creditors.

How long will the plan take?

Based on the figures that you give us during your financial health check, we will give you an estimated time scale of how long we think it will take you to be debt free. Your situation will be reviewed every 6 months, and if you feel you can afford to pay more, you can increase your payments and become debt free in a shorter period of time. However, if you are struggling with the arrangement, we can lower the payments further – this will increase the time scale of becoming debt free.

Can I cancel a DMP?

You can stop at any time during the plan, normally without any charges, but we would prefer notice so we can inform your creditors. The plan can also be adapted if you are experiencing further financial problems please let us know and we can look at restructuring your plan for you.

Will creditors agree to reduce my payment?

In our experience creditors are prepared to accept reduced repayment offers where we are able to demonstrate that the offer we make is reasonable and you are committed to repay your debts. OneDebt has a great relationship with most high street lenders who generally accept our offers as we work within the industry guidelines.

Will I get a default notice?

Your creditors can issue a default notice as you are defaulting on the original credit agreement. Since you are experiencing some problems maintaining payments, your ability to borrow may already be affected. However, by coming onto the plan, we will ensure regular payments are made to the creditors and the payment history you build with us is the basis of a valuable recommendation letter.

Will it affect my credit rating?

If you are already in financial difficulty and are struggling, your credit history is likely to have been affected already. If a contractual payment isn’t made it will still affect your credit rating as you are going against the contractual agreement. OneDebt help you clear the debt quicker by negotiating to freeze interest and charges, affecting your history for a shorter period. We do not report your DMP to credit reference agencies.”

Could my creditors issue me a CCJ?

A DMP is not legally binding so creditors still have the authority to apply for court action it is however unlikely they would go for further action once in the plan as the CCJ payment would remain similar to what you are paying in the DMP, Therefore it would cost them money to get the same result.

Can I enter a DMP if I have a CCJ?

Yes, CCJ's do not stop you from entering a DMP; OneDebt will make allowances within your expenditure to ensure your commitment to the CCJ is met.

Can I continue to use credit?

We do ask clients not to obtain any further credit once in the plan. It can be considered fraudulent if you take out credit when you know you cannot repay it. Also it is not a very good idea to obtain more credit when you are struggling to repay the credit you already have.

Will interest and charges be frozen?

We cannot guarantee an immediate freeze on interest and charges but from experience we normally find clients who stick to the plan after 6 months normally have 60-70% of interest and charges frozen. This is because the creditors are more often co-operative as they see the debtor is making every effort to clear the outstanding debt in full.

Will I have to make cutbacks?

We are required to submit the income and expenditure details to your creditors; if they see you're not overspending and buying luxuries they will be more likely to freeze interest and charges therefore cutbacks may have to be made as we have to ensure we are not going beyond the guidelines creditors accept.

Will I still receive calls and letters from the creditors?

Creditors are still entitled to contact you directly as a Debt Management Plan is an informal arrangement so we cannot guarantee that all letters and calls will stop immediately. Once you have shown commitment to the plan they should stop all together. All correspondence you receive from your creditors should be forwarded to OneDebt, and we will act as a shield and deal with your creditors on your behalf.

Is my home/assets at risk?

No, a DMP is not legally binding so your assets will not be at risk if you continue to make the agreed payments in to the plan. When looking at your expenditure we would make allowances for your mortgage and secured debts so there is no reason these should be at risk.

Do I have to tell my partner?

We believe that it is always best to be honest with your partner; however, OneDebt would never force you to tell your partner about your debt situation unless you had shared debts, it is an informal arrangement with yourself so we would not disclose any information to anyone except yourself and your creditors.

How Do I contact One Debt?

You can contact us by calling on free phone 0800 408 0501 or alternatively once on the plan you will have a point of contact with a direct telephone number.