How is PayPlan funded?
We’re funded in a rather unique way.
Rather than charging our clients, we receive donations from the credit industry for our debt solutions. Simply put, our debt plans benefit the debtor because we help them to become debt-free whilst living comfortably, without scrimping and saving every penny. Our plans also benefit creditors because they ensure that creditors are receiving money on a consistent, monthly basis to cover what they’re owed.
What is my credit rating and how does the Debt Management Plan affect this? Will it go against me or my house?
Your credit rating determines how likely you are to repay any money you borrow, and is usually the first thing your creditors will look at when they’re deciding whether or not to lend you money.
Simply entering into a DMP will not affect your credit rating, but if you begin missing payments, making reduced payments or begin receiving CCJ’s or default notices then your credit rating may be affected. Your credit rating will improve over time if you make the payments you’re supposed to make (both in full and on time), and it’s worth remembering that in this instance your credit rating has no link to your property.
If you wish to obtain a copy of your credit file then click here to find the contact details for the different credit reference agencies.
Can my car on hire purchase be taken away?
A hire purchase agreement is a secured loan and is therefore not covered in your DMP. This is your responsibility, separate from your DMP repayments, please ensure that you continue making the agreed payments directly to the lender.
I might be coming into enough money to clear my debts in full in the future, what should I do?
If this happens then please contact your case officer as soon as you can; we’ve got a specialist settlements team that will negotiate with your creditors to clear your debts once the funds are available. There may even be a chance your creditors could accept a reduced amount in a lump sum.