FAQ - Debt Management

1. How much will I pay each month?
This depends on your current financial position. Harrington Brooks will help you reach agreement with your creditors which will mean that you can make regular and affordable repayments.

2. How long will I have to make payments for?
The term of the facility will be agreed at the outset. Monthly payments will be made until all debts have been repaid

3. How do I know that my debts are being repaid?
Harrington Brooks will provide you with an initial statement detailing the payments to all your creditors. Thereafter, you will receive a quarterly statement detailing all of the payments made, as well as statements from your creditors.

4. What do you charge for this service?
The first repayment will cover our set up costs of your debt management plan and our negotiations with all of your creditors. Thereafter there is an ongoing administration fee, however, this cost is included in your monthly repayments. No additional fees are paid.

5. Is a debt management plan another loan?
Debt Management is not a loan, but a facility which allows you to consolidate your outstanding debt. It allows you to make affordable and regular repayments to your creditors without having to seek additional lending.

6. What if I fail to keep up my monthly repayments?
Your creditors may not wish to continue to co-operate with you and may pull out of the agreement made. If you are experiencing problems with the repayments our best advice is to let us know asap. There are other options available to you such as an IVA. Please speak to your case handler who will discuss this with you.

7. Will the debt management plan be able to include all of my creditors
A Debt Management Plan will include most of your current creditors, however there are some which may not be able to be incorporated into a Debt Management Plan. These may include creditors which whom you have priority debts, i.e. debts if not paid will result in significant penalties such as having your home repossessed.

8. Will my credit rating be damaged?
When you decide upon the Debt Management Plan route, it does mean that your current credit agreement terms will have been broken. Therefore this does mean that it will have an unfavourable effect on your credit rating.

9. 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.

10. Will my creditors definitely accept this plan?
We cannot guarantee that your creditors will accept a Debt Management Plan, however our team will negotiate on your behalf and if the terms are acceptable to them they are likely to accept as they understand that their monies will be recovered.

11. Will I have to pay my debts off over a longer period of time?
You may have to pay them back over a longer period, however, you will be paying an affordable monthly payment which will give you piece of mind. Also, through negotiation with our advisors it may be possible that some creditors could possibly freeze any interest or other charges in order that you can repay their debt more rapidly.

12. Will I be able to get a Debt Management Plan if I have CCJ’s
If you have an existing CCJ (County Court Judgement) you will be applicable for a Debt Management Plan.

13. Does it matter if I am a homeowner or tenant, unemployed or working part time?
You don’t need to own a home or be a tenant to meet the criteria for a Debt Management Plan and as long as you have additional income, your unemployment status will not be a factor.

14. What if my circumstances change?
If your financial circumstances change get in touch with us immediately. We can review your current arrangements and will work with you to discuss options and give you alternatives.

15. Will a Debt Management Plan pay off my debts?
Our debt management plan consolidates all of your outstanding debts allowing you to make affordable monthly repayments to clear this debt.

16. Do I have to tell anyone?
Harrington Brooks will not disclose any personal information regarding your Debt Management Plan unless you request that we do so. If you do not wish anyone to know that you have a Debt Management Plan in place you do not need to inform them.