Debt Management Plan fees
“Initial Setup Charge”
This is an amount charged at 49% of your monthly payment to the Debt Management Plan taken from the payment over the initial 6 payments subject to a maximum £200. This will never exceed 50% of your monthly payment. This charge will cover:
- Agreeing a personal monthly budget with you and creating an income and expenditure statement;
- Calculating your reduced Monthly Payment; negotiating with each of your Creditors to agree to the reduced Monthly Repayments and requesting that they freeze interest and charges where possible;
- Administration and preparation of your Debt Management Plan;
- Setting up of Monthly Repayments schedule with each of the Creditors;
- Distributing Monthly Repayments to each of your Creditors.
“Monthly Management Charge”
This is an amount of 23.50% of your monthly payment to the debt management plan and taken from your monthly payment subject to a minimum fee of £39.50 and maximum £100. This is taken from your seventh payment to the debt management plan. This charge is made on distribution to creditors starting from month seven. This will never exceed 50% of your monthly payment and covers:
- Distributing Monthly Repayments to each of your Creditors;
- Support and advice regarding any Creditor correspondence i.e. emails, phone calls, letters, and advice on what Creditors can or cannot do;
- Fully trained paralegal team on hand, specialising in managing pre-court legal issues;
- Conducting annual reviews to make sure you are happy with the plan and ensuring any Creditors agreements remain in place;
- Conducting reviews if you have a change in circumstance and ensuring that the Monthly Payment is affordable to you;