How does a Repayment Arrangement work?
With a Repayment Arrangement, you work directly with your creditors to agree on a payment plan that suits your budget. As it’s an informal solution, you’ll have flexibility when it comes to increasing or decreasing your monthly payments if you need to, but it’s best to agree this with your creditors.
Assessing your budget and debts
We’ll review your financial situation to help you work out a realistic repayment amount.
Finding the right solution
- If a Repayment Arrangement is the best option for you, we’ll send you a comprehensive guide which talks you through all the next steps.
- You’ll then be responsible for contacting your creditors and agreeing on a repayment plan directly with them.
Am I eligible for a Repayment Arrangement?
A Repayment Arrangement may be a suitable option for you if:
You need more manageable payments
A Repayment Arrangement can help you structure your payments to fit your budget.
You need a short-term solution
If you’ve experienced a temporary change in circumstances, a Repayment Arrangement can provide the breathing room you need.
You owe money to multiple creditors
If you’re dealing with several creditors, a Repayment Arrangement can give you a clear plan to follow.
What are the pros and cons of a Repayment Arrangement?
Benefits of a Repayment Arrangement
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More Affordable Payments
A Repayment Arrangement helps you create a plan where you pay what you can realistically afford. -
Interest & Charges May Be Frozen
Creditors may agree to reduce or stop interest. -
Short-Term Flexibility
Ideal for temporary financial difficulties. -
You Stay in Control
You have control over your repayment plan, and you can adjust payments if your situation changes. -
No Formal Debt Process
Avoid possible restrictions involved with some legally binding solutions.
Things to consider
-
Credit Impact
A Repayment Arrangement may affect your credit score and appear on your credit report. -
Creditor Approval Needed
Creditors must agree to the repayment plan, and some may not accept it. -
Not Legally Binding
Creditors can still take legal action. -
Ongoing Payments
You’ll need to make regular payments until the agreed amount is repaid. -
Self-Managed
You arrange payments with each creditor, which can take time. -
Not Ideal for Long-Term Debt
It is not the best solution if you need a longterm plan.
We’re here to help you explore your options and find the right solution for you.
What debts can be included in a Repayment Arrangement?
A Repayment Arrangement can cover most unsecured debts, such as:
- Bank loans
- Overdrafts
- Credit cards
- Payday loans
- Council tax arrears
Certain debts should be paid in full where possible, like:
- Mortgages
- Car loans
- Court fines
- Child maintenance
Frequently asked questions
We’ve put together a list of frequently asked questions about Debt Settlements and we hope your query can be answered here.
What happens if I can’t keep up with the payments agreed?
Will a Repayment Arrangement affect my credit rating?
If you pay less than the original agreed amount, creditors may report this on your credit file for up to six years. You can ask your creditors how they will record it.
How long does a Repayment Arrangement last?
Let’s make your debt more affordable
You’re just two steps away from taking back control of your finances and freeing up more money for you and your family.
Getting advice has no impact on your credit score.
Excellent, professional, friendly and empathetic service. PayPlan have given us our lives back!
Sandra Daly
Excellent, professional, friendly and empathetic service. PayPlan have given us our lives back!
Sandra Daly