Cant Pay Loans

FAQ [Debt Management Plans]

Please find below a list of ‘Frequently Asked Questions’. Please feel free to contact us with any specific question or query you may have in relation to your own personal circumstances.

If you are finding it difficult to pay back your loans or if you cant pay loans we can help.

• What is Debt Management?
  
  
• Is a Debt Management Plan (DMP) suitable for me?
  
  
• What are the main benefits of a Debt Management Plan?
  
  
• Is a Debt Management Plan a loan?
  
  
• How long will the plan take?
  
  
• How much will I pay on a monthly basis?
  
  
• How do I know that my debts are being paid?
  
  
• How is my money held until it is distributed to my creditors?
  
  
• Do I have to be in full-time employment?
  
  
• Do I have to be a home owner to qualify for this programme?
  
  
• Will you need to check my credit history?
  
  
• Will my credit rating be damaged?
  
  
• Will my creditors definitely accept this plan?
  
  
• Will the debt management plan be able to include all of my creditors?
  
  
• What if I fail to keep up my monthly repayments?
  
  
• What about Creditor phone calls?
  
  
• What if my circumstances change?
  
  
• Will the plan prevent my creditors taking further recovery action?
  
  
• Should I contact Mabs - Money Advice and Budgeting Service (Ireland)?
  

Q. What is Debt Management?

Debt management is a common term used to describe the process of reducing and clearing all your current outstanding debts with your existing Creditors. Our firm uses a Debt Management Plan (DMP) to achieve the above objectives.

Q. Is a Debt Management Plan (DMP) suitable for me?

Generally speaking a Debt Management Plan is suitable for the vast majority of people who have unsecured debts (Credit Cards etc) that they cannot afford to repay. Our experienced Debt Consultants will advise you further on this process.

Q. What are the main benefits of a Debt Management Plan?

• The plan is highly flexible and takes into account your personal circumstances

• You only pay ONE monthly payment

• You will only pay what you can realistically afford

• Interest and Charges are often frozen, so the overall debt does not increase

• You will have a definite date when you will become Debt Free

• The stress of dealing with Creditors on your own will be gone

• You will have more time to enjoy the things in life that matter

• All of your debts will be repaid in due course

• They are no penalties or charges for cancelling the Plan early

• Creditors are used to dealing with and accepting Debt Management Plans

• Suitable for home owners and tenants alike

Q. Is a Debt Management Plan a loan?

No, as stated a Debt Management Plan is a detailed plan adopted by our firm on your behalf to reduce and clear your present outstanding debts.

Q. How long will the plan take?

Obviously, the duration of the plan will be based on the amount out of debt outstanding that needs to be repaid by the client. This of course will vary from client to client. At our initial consultation will give you an estimated time period for you becoming debt free. Pleas note that because of the reduced payment structure under the Debt Management Plan it will take longer to pay off your debts.

Q. How much will I pay on a monthly basis?

Your personal financial circumstances will determine the monthly repayment amount. Our firm assess each client on an individual basis. Our programmes are tailored made to match your specific financial circumstances at a particular point in time. Remember we represent your interests in this process. Therefore, we will ensure a monthly repayment that is suitable to you and your Creditors.

Q. How do I know that my debts are being paid?

Your monthly payments will be distributed to each creditor based on a pro-rata basis. The payments will be based on the agreed amount included in your Debt Management Plan. You will receive a detailed quarterly statement highlighting all the transactions that have taken place on your account.

Q. How is my money held until it is distributed to my creditors?

All client monies sent to us to pay their respective Creditors are held in a client trust account with our bankers. This means that your money is completely protected in the unlikely event of our insolvency.

Q. Do I have to be in full-time employment?

No, however a person must have a source of income that is capable of covering more than their standard monthly living expenses. In the past, we have helped part-time and temporarily unemployed people to find a solution to their debt problems. Please feel free to call us on: , for further details.

Q. Do I have to be a home owner to qualify for this programme?

No. Our Debt Management plans are opened to both homeowners and tenants alike. Please contact our offices for further details.

Q. Will you need to check my credit history?

No credit checks are required, as we will not be lending you any money, just helping to manage your current outstanding debts.

Q. Will my credit rating be damaged?

If you are presently failing to make your monthly payments then you are breaking the original terms and conditions agreed with your Creditors. A reduced payment to your Creditors whilst welcomed will not change the unfavourable status of your credit rating.

Q. Will my creditors definitely accept this plan?

A Debt Management Plan is not a legal or contractual agreement. Therefore, there is no guarantee that your creditors will accept. However, based on our experience if the agreement is beneficial to both parties then it is highly likely to be accepted.

Q. Will the debt management plan be able to include all of my creditors?

Although a Debt Management Plan is able to include most of your existing creditors, there are those that cannot be included. These are called “priority debts”, meaning that if they are not paid then there will be serious consequences. For example failing to pay your mortgage (a priority debt) could result in your house being repossessed.

Q. What if I fail to keep up my monthly repayments?

A debt management plan is an informal arrangement between you and your creditors. This means that you are able to cancel it any time. However, we strongly advise our clients to discuss such measures well in advance with us. Your creditors will obviously endeavour to collect their outstanding debts through increased collection actions and phone calls etc.

Q. What about Creditor phone calls?

Creditor phone calls are an inevitable part of the collection process. Any debt relief firm who says they can stop all creditor calls is misleading you about the nature of their service. We at Debt Consultants will work with clients and creditors alike to help put an end to these stressful experiences.

Q. What if my circumstances change?

If your circumstances change (favourably or otherwise) get in touch with us immediately. We will review your current arrangements and will work with you to discuss options and give you alternatives.

Q. Will the plan prevent my creditors taking further recovery action?

We cannot guarantee that your creditors will not take further action, including court action to recover debts from you. However, we will help you respond so that any repayment that is required is within your ability to repay.

Q. Should I contact Mabs - Money Advice and Budgeting Service (Ireland)?

Yes. We actively encourage our clients to use Mabs when their debt levels are below €2,000. Their national helpline is 1890 283438

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Make an informed financial decision. Call one of expert consultants to discuss the financial options that will suit your lifestyle. Don’t delay call us today on ,