Sheriff Officers
Debt Management - FAQs
If you’ve got questions about Debt Management, chances are they will be answered here. If you can’t find the information you’re looking for, however, or you’d rather communicate with a real person than a computer, all you need to do is contact us.
How much will my monthly payments be?
Your monthly payments will be calculated by subtracting your expenditure from your income. In other words, you are offering to contribute your spare money - not the money you need to live on. The final figure will be decided between you and your debt adviser, and you will not be forced into anything.
What will happen to my credit rating?
Your credit rating will be progressively damaged for a period of six years. The longer a Debt Management Plan goes on, the worse your credit rating will become. Six years after the end of the Debt Management Plan, your credit rating will be restored and you will be able to borrow again as normal.
Will my house and car be in danger?
No, your assets are not relevant to a Debt Management Plan. You should bear in mind, however, that it is possible for creditors to get your debt secured on your house by going to court and having a 'charging order' issued. If you receive notification that this is in progress, speak to your debt adviser. It may be that further action must be taken.
How long can a Debt Management Plan last?
A Debt Management Plan has no fixed term, so it can last for any length of time. However, it is worth bearing in mind that after a 12-24 months your creditors will begin to charge interest again. You should keep aware of how much interest is frozen, because you may reach the stage where your debt is not reducing at all. If this happens you would be advised to consider another option such as a Trust Deed, which gives you light at the end of the tunnel.
Will my partner be affected?
Although your parner's credit file is supposed to be wholly separate to your own, if you live at the same address they may be affected by your records. In order to avoid this, you should visit your credit file online and 'request a dissassociation'. Your partner should do this as well. This will ensure that your partner's credit file is not damaged. For more information, contact us.
Do I need to have a face-to-face meeting?
No.
Can I still use a normal bank account?
Yes. However, if you are in your overdraft, or if you owe money to your bank, you would be advised to open a new bank account with another bank.
Can my creditors reject my offer?
Normally not. However, they are within their rights to refuse to freeze interest and charges. Due to our level of experience and connections with the creditors, we are usually able to get most interest and charges frozen. But there is never a guarantee of this, as nobody can predict how the creditors will respond.
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