Affordable Monthly Payments Personal Plan

What is a Personal Plan?

It is an agreement between you and your creditors that can be made when you are in a position where you can no longer afford to make your unsecured debt repayments in full as and when they fall due, but where you can afford to make a reduced offer of payment from any disposable income that you may have. It does not involve any legal paperwork or court appearance.

The Personal Plan is a simple and effective way for you to pay your unsecured creditors. Our advisor will ask you a number of questions about your current financial position which will enable us to calculate how much you can realistically afford to pay to your creditors each month.
We call this your Monthly Disposable Income (MDI) Your MDI will then be paid as a single payment to us each month and subsequently disbursed to your creditors or their representatives or appointed collectors. Each month, you will be able to let us manage and deal with your creditors through one single payment.

What will it achieve for you?

One reduced monthly payment to your creditors.
A debt management plan is a debt solution for anyone who has unsecured debts that they can’t afford to repay. A DMP requires you to have a surplus income each month (money left after you’ve paid all your living costs such as household bills & priority debts).
You only pay what you can afford based on the statement of affairs. (SOA)
You will no longer need to deal with your creditors alone we will be acting on your behalf in most dealings with them.
We will ask your creditors to freeze interest and charges, this stops the debt increasing.
You will pay only one monthly payment to debt free me who will pay your creditors on a pro-rota basis.
You will receive a monthly statement showing the payments sent.
You will remain in control of your assets i.e. property.
This will enable you to pay the debt back at what you can afford at present rather than your contractual agreement.

Disadvantages of an Informal arrangement. (DMP)
These plans are not legally binding so creditors do not have to agree to the repayment schedules. However, if the arrangement works well the creditor will be more than happy to co-operate.
Your creditors are under no obligation to accept your offer of reduced payments and if they do accept they are entitled to change there mind at anytime.
They can ask for a review of your situation which could cause your payments to increase.
They are not obligated to freeze interests and charges on your account.
They may freeze interest for a limited period of time or charge interest at a reduced rate.
It is possible that the total debt will increase. Your credit rating will be effected if your contractual payments are reduced or stopped.
It is likely that you would be required to pay your creditors in full over a number of years. It is possible that you will continue to pay them for some considerable time after which an IVA (Individual Voluntary Arrangement) would have been completed. It is also feasible that you will be required to pay greater contributions.
You will have no protection from the courts, and the creditors at anytime can decide to issue a judgement, bankruptcy petition or any other legal process in respect of there debt.