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FAQs

Debt solutions

Our Debt Solution FAQs address the most common questions regarding our debt solutions, assisting you in understanding how they function and whether one is suitable for you.

Can I continue to use credit during my Debt Management Plan (DMP)?
As responsible debt advisers, we ask clients not to obtain further credit whilst in a Debt Management Plan. It can be considered fraudulent to take out credit that you know can’t be repaid. The Debt Management Plan that you discuss with PayPlan will ensure you have enough money to live on, so you shouldn’t need to take out any more credit during your DMP. There are of course exceptions; for example you might have a company credit card where you are not liable for the repayments, but you should still declare these to avoid any problems.
What support do I get during my Debt Management plan (DMP)?

At PayPlan we pride ourselves on giving excellent support to all our clients. Throughout your PayPlan Debt Management Plan arrangement, we will continue to support you so if you have any questions or concerns, do not hesitate to get in touch. If your financial situation changes, call us, and we will go through your circumstances and, see what options are available. 

Our website will also give you continuous support, with hundreds of pages of financial knowledge, money saving tips, up to date relevant news and PayPlan Plus.

Can I enter into a Debt Management Plan (DMP) if I already have a CCJ?

CCJs don’t prevent you from entering into a Debt Management Plan.

PayPlan will help you make the payments to creditors who have issued you with a CCJ. You will be required to provide details of your CCJ during the financial assessment we undertake as a normal part of your Debt Management Plan, and CCJ payments will be given priority when PayPlan distribute your payments monthly.

Will I get a Default Notice?

If you alter or adjust your creditor payments, whether that is by negotiating reduced payments yourself or by entering into a debt management plan, your creditors can issue a default notice. Although you are still making monthly repayments, the payment is likely to be less than you originally agreed to pay when you entered the original credit agreement. A default notice can be issued at any point during your arrangement even if you are maintaining the terms of your renewed agreement.

If you receive a default notice, it doesn’t automatically mean the creditor is going to take legal action. The default will appear on your credit file for 6 years from the date it was issued.

If you have any doubts or queries about default notices, then please contact us and we’ll explain everything in detail.

Can my creditors still issue me with a County Court Judgment (CCJ)?
A Debt Management Plan isn’t legally binding so creditors could still take action against you, but if any of your creditors were to apply to the court for a CCJ, then we would continue to support you.
How will I know my creditors are being paid during my Debt Management Plan (DMP)?
PayPlan have an exclusive website for tracking your Debt Management Plan payments called PayPlan Plus. This website is exclusive and free to all our clients, and allows you to view the DMP payments we have received from you. You will also be able to track individual payments to each of your creditors and confirm exact dates. Once you enter into a PayPlan DMP arrangement you will be given your own unique login details so you are able to track your DMP payments.
Will I still receive calls and letters during the term of the Debt Management Plan (DMP)?

Due to a Debt Management Plan being an informal arrangement, your creditors are still entitled to contact you directly, so PayPlan cannot guarantee that all letters and phone calls will stop immediately, but we can hope to reduce communication to a minimum. If you do receive any correspondence from your creditors that concerns you while you’re in a PayPlan DMP, simply contact us and we will be more than happy to provide you with further information and will, if necessary, speak to your creditors on your behalf. We will speak to all your unsecured creditors whenever we need to. This is one of the major benefits of being a PayPlan client.

Is my credit rating affected if I enter into a Debt Management Plan (DMP)?

A DMP in itself will not show on your credit file, however, if you have recently been experiencing financial difficulty (missed repayments) then your credit rating is likely to have been affected already by this.

To explain this further; if you’re paying less than your creditor’s contractual payment when in a DMP, you won’t be complying with the original credit agreement so your credit rating is likely to be affected.

Will my creditors agree to my Debt Management Plan (DMP) payments?
Creditors don’t actually have to agree to the Debt Management Plan payments in order for you to send them the money. You can only offer what you can afford and no more; the creditors know this but may still ask for increased payments.
Who informs my creditors of the Debt Management Plan (DMP)?
One of the benefits of a DMP through PayPlan is that we will contact your creditors, explain your situation, show them your income and expenditure and make an offer of payment to them.