What is a Debt Management Plan?

A Debt Management Plan is a simple and effective way to pay your non-priority creditors. Your counsellor will calculate the amount you can afford to pay after giving consideration to your priority debts - mortgage, utilities, rates etcetera and day-to-day living expenses. Any money left is then deposited with us as a single monthly payment and then distributed to your non-priority creditors on your behalf.

What are the benefits of a Debt Management Plan?

We will negotiate reduced payments on your behalf with your creditors. In many cases the creditor will also agree to totally freeze or reduce the amount of interest being charged on your accounts, giving you the benefit of:

• You have our assistance in dealing with your creditors

• Making payments you can afford and reducing your debt

• Having regular reviews of your circumstances and your monthly deposit amount changing to reflect your situation

• A totally free service - every penny you send to us goes to paying off your debts

Once we receive your monthly deposit, you have peace of mind in knowing that all of your creditors on the DMP will be paid.

How much will a Debt Management Plan cost?

Nothing. CCCS does not charge you for the service.

Can anyone have a Debt Management Plan?

A Debt Management Plan may not be the most appropriate solution to your particular circumstances, which is why we would arrange an appointment with a counsellor to discuss your individual circumstances and options.

How long does a Debt Management Plan last?

This depends on the amount of debt and level of repayment agreed with your counsellor. As a rough guide, if you divide your total debt by your monthly DMP payment amount, this gives you the total number of months it is expected to last.

Will my payment remain the same throughout the life of my Debt Management Plan?

Your income and expenditure will be reviewed periodically with a support counsellor. If your circumstances improve, there may be an opportunity to increase your monthly DMP payment and this will shorten the life of your DMP. Conversely, if your situation deteriorates, it may be possible to temporarily reduce your payments until they improve.

How will I know my creditors are being paid?

We will send you a statement each month showing how the monthly payment has been shared among your creditors, so you'll always be aware of how much each has been paid.

What effect will a Debt Management Plan have on my credit rating?

If you are not making your contractual monthly payments to your creditors it is likely that your credit rating has already been affected. If you are making reduced payments through a Debt Management Plan many creditors will record this on your credit file.

Will my creditors stop charging me interest if I set up a Debt Management Plan with CCCS?

Some may continue to charge interest but we receive excellent cooperation from many creditorsand this can have a significant impact on your ability to clear your debts. However, you should be aware that they are not legally obliged to do so.

Do my creditors have to accept the payments I offer them?

No, they don't have to accept the offer - but we will have prepared a budget with you that should demonstrate that you are paying your creditors what you can reasonably afford. They will also receive details of payments being made to creditors to show they are all being dealt with fairly.