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FAQs

The fee we charge is made in two steps over the period of your tailor-made Debt Management Plan (DMP).

Initial fee: The first month's payment is retained by Debt Out. The cost will be established once we are able to review your common financial statement. The cost incurred will cover the following elements of the service you will receive:

  • Reviewing your common financial statement
  • Calculating your monthly payment
  • Corresponding with your creditors
  • Negotiating with your creditors

Due to the fact that we retain the first month payment, you will fall one month into arrears. However, this is expected and your creditors will be informed.

Initially you may still receive letters and phone calls from your creditors. It is important that you do not ignore these.

You receive letters due to the period between negotiation and agreement with your creditors. While we negotiate with them, they will continue with their normal collection practices. This is nothing to worry about.

We will start to correspond with your creditors as soon as we receive:

  • Your signed letter of authority
  • Your initial payment

Please be aware that we cannot guarantee your creditors will permanently cease to contact you - they are still entitled to do so. Do not ignore them; just politely ask them to get in touch with us.

We have a separate customer account for all of the money that we receive from customers.

The amount that we establish is then paid to your creditors from this account. The account is never used for business purposes but solely as a place to store your money before the creditors are paid.

Payments will be made to your creditors within five working days of receiving cleared funds from you.

You will continue to get statements from your creditors as long as you keep up to date with payments to us.

As part of our customer promise we will also ensure you receive regular updates which will tell you when payments have been made.

Taking out a Debt Management Plan could mean that you will not be making the contractual repayments to all of your creditors.

Your plan is tailor-made to ensure that we achieve the best possible outcome for you. We will address the most urgent debts at the off-set, with consideration to the 'bigger picture' for you and your creditors.

This ultimately means that, although payments to creditors will not stop they may be significantly lower than are expected (dependent on your plan). Meaning:

  • It may take longer to repay some debts
  • Your credit rating is likely to be effected in the short, medium or long term

It is worth-while to note that if you have already missed a number of payments or are in arrears your credit rating may already be affected.

Yes! Our Debt Management Plans are flexible. If you want to make an extra payment one month, give us a call to discuss how you want to do this, we will accommodate wherever possible.

If your circumstances change and you need to increase or lower your payments, please get in touch so that we can arrange a best plan review for you to ensure this continues to be the best method of debt resolution for you.

A lot of our clients worry about this. If you stay with a bank that you have credit facilities with they may take steps to collect the money owed to them as soon as monies are paid into your account.

The Debt Management Plan operates by offering payments to your creditors based on what you can realistically afford. If your bank takes full payment you may not be able to make other payments.

You may want to think about opening another account with no overdraft attached to it. This will give you more control over your money, ensuring that all creditors receive payment from us. If some of your creditors see that they are not getting a reasonable payment they may be unwilling to take part in your Debt Management Plan.

As soon as we have reached an agreement with your creditors, you should cancel all standing orders or direct debits to creditors that are included in your plan. You should take care to ensure that any payments to priority creditors such as mortgage lender, council tax, water rates, gas and electricity etc, are maintained or re-arranged as they will not be included in your plan.

Debt Management Plans are not a loan; we do not offer loans. By taking out another loan you could be increasing your debts due to increased interest rates etc.

We attempt to rearrange your existing debts into smaller payments that you can afford more easily.

It is our aim to provide a professional service at all times. However, if you are unhappy at any point with the service that you have received, please follow our complaints procedure

A member of our team will be in touch within 48 hours of receiving your complaint.

You may cancel the agreement at any time during the first 14 days by contacting us in writing or by telephone (followed by written confirmation).

Any fees paid will be refunded to you, however, any payments to creditors will not.

We are regulated by the office of fair trading (OFT) and adhere to their official guidelines.

All documentation regarding your plan (including letters to and from you or your creditors) will be kept by us for as long as your plan is operating.

When your plan ends you are entitled to be forwarded this documentation for your own records. This must be requested during your plan period.

If you do not want your paperwork back, we will destroy it securely.

A secured debt, for example a mortgage, is any type of debt or borrowing where the balance of the debt or loan is covered by one or a specific item of value.

By securing the right to take control of the specified item of value, a lender or creditor is able to guarantee a return on their investment amount of the loan or the line of credit that was extended to the recipient of the loan.

More simply, a secured debt grants the lender or creditor the ability to acquire an item of value belonging to the debtor should they default.

An unsecured loan, for example a store card, is a loan that is granted without any collateral backing it.

A person obtaining an unsecured loan usually agrees to pay back the loan within a set term, having to sign documents to set the agreement. This type of loan can also be called a signature loan.