A debt management plan is an informal agreement to pay your debts in affordable monthly amounts. Specifically, you make one payment each month, and subsequently, we share it between your creditors. However, it isn’t legally binding, and consequently, your creditors don’t have to agree to it.
1 Check what you can afford: We look at your income, spending and debts, so we can work out how much you can pay each month.
2 We contact your creditors: We ask them to freeze interest and charges and to accept smaller monthly payments. They don’t have to agree, and we’ll tell you what they say.
3 You make one payment a month: You pay us, we take our fee, and we share the rest between your creditors, as set out in your payment plan.
A debt management plan may suit you if:
A plan may not be right if you can’t afford any payment, if your debts are more than you could repay in a reasonable time, or if you need legal protection from creditors. Other options may suit you better:
Some debts are called priority debts because not paying them has more serious consequences. They include mortgage and rent arrears, council tax arrears, gas and electricity, court fines, child maintenance and tax debts to HMRC. Missing these can lead to losing your home, court action or being disconnected.
These are usually dealt with first and aren’t normally part of a debt management plan. We’ll talk through them with you.
We can also assist with certain debts that are not ordinarily included in a conventional personal Debt Management Plan, including:
These debts may need to be addressed separately, depending on the nature of the liability and your individual circumstances.For example, HMRC tax arrears may be addressed through a Time to Pay arrangement.
a) If your monthly disposable income is less than £125 then our initial setup fees will be three months of your disposal income (Payable in six equal monthly installments).
b) If your monthly disposable income is more than £125 then our initial setup fees will £250 plus your one-month disposable income (payable in a minimum six equal monthly installments). We do not charge any additional management fees during the first six months of your payment plan term. Our management fees become payable from the seventh month onwards as per clause 6.c.
c) Unless otherwise agreed, our standard fee payable from 7th month onward will be 20% of your monthly payment or £40 whichever is higher (subject to the maximum £100 fee cap) for managing up to 08 creditors on your file, 22% of your monthly payment or £45.00 whichever is higher (subject to maximum £100 fees cap) for managing from 9 to15 creditors. From 16 to 20 creditors, our fees will £70 or 22% of your monthly payment (subject to the maximum £100 fee cap).Above 21 Creditors our fee will be flat £100 of your monthly payment. You authorize us to recover our management fee from the client bank account prior to issuing payments to your Creditors mentioned in the ACME Pay Plan.
1) You do not pay us management fees upfront.
2) We will send payments to all your lenders from month one onwards, which will always be 50 percent or more of your total monthly
If your monthly disposable income is less than £125, then our fees will equal three months of your disposable income (payable in six equal monthly instalments). If your monthly disposable income is more than £125, then our fees will be a £250 one-off setup fee plus one month of your disposable income (payable in a minimum of six equal monthly instalments). We do not charge any additional management fees during the first six months of your payment plan term or until we receive your setup fee. Our management fees become payable only after we receive the setup fee; refer to the below calculation table for a fees explanation. You do not pay us management fees upfront.
Once your six months are over or once we fully receive your setup fee, you will revert to the below fees structure. (We have calculated the amount set out in the below table to ensure that we always distribute at least 50% of your monthly payment to your lenders from month one onwards).
Unless otherwise agreed, our standard fee payable from 7th month onward will be 20% of your monthly payment or £40 whichever is higher (subject to the maximum £100 fees cap) for managing up to 08 creditors on your file, 22% of your monthly payment or £45.00 whichever is higher (subject to the maximum £100 fee cap) for managing from 9 to15 creditors. From 16 to 20 creditors, our fees will £70 or 22% of your monthly payment (subject to the maximum £100 fee cap). Above 21 Creditors our fee will be a flat £100 of your monthly payment.
a.The minimum fee payable is £40; the actual amount of our fee is shown in the ACME Pay Plan.
b. We will pay all further payments to your Creditors mentioned in the ACME Pay Plan, after deducting our Fee.
a. First, we will place all money that you pay us under the ACME Pay Plan in the Client Bank Account.
b. Next, we will pay your Creditors mentioned in the ACME Pay Plan from the funds held on your behalf in the Bank Account.
c. Meanwhile, you have authorized us to obtain payment of our Fees from the Bank Account.
Additionally, you will receive a quotation which will tell you about any other fees relating to additional work you authorize us to act on.