Can I put all of my debts into the plan?

A Debt Management Plan is a very useful way of dealing with Non Priority debts, i.e. those debts which do not have a direct negative impact upon your home, property or yourself.

The plan will make arrangements to pay a sum each month which you can reasonably afford after taking into account your essential living costs, such as mortgage or rent, other mortgages and car finance (HP), utility costs (electricity, gas, telephone), Council Tax, food and expenses to get you to work and back. These bills have to be paid to keep the roof over your head and the food on the table; failure to pay the mortgage or rent could put your home at risk, whilst failing to pay your Council Tax could end up as a criminal offence.

Unsecured debts are classed as Non Priority, that is to say that non payment will not endanger your home or put you at risk of criminal prosecution. As a result of this, the Debt Management Plan can be used to negotiate with the creditors so that payments to these debts can be agreed at a level which is affordable within your overall budget, but without the risk of losing your home or other property.

Examples of such debts are:

Personal Loans
Bank overdrafts
Payday loans
Credit cards
Store Cards
Mail order catalogues

Car finance is usually Hire Purchase (HP) or personal lease, both of which are secured by the car itself, and therefore failure to make the payments to the loan per the agreement risks the loss of the car – plus the possibility of a residual debt if the amount raised by the sale of the car at auction is not enough to clear the amount borrowed against the car.

Any monthly payment that is for a debt which is secured against your house or other property (this includes goods suppliers like BrightHouse) needs to be included within your essential monthly living costs unless you are happy that you can manage without the item in question.

Our team of advisers at National Money will ensure these payments are taken into account when discussing your financial situation with you, and will always be covered as part of the budget calculated before we reach a view of what you can reasonably afford to pay into the Debt Management Plan.

Call our team on: 08448 247 260 to discuss any concerns you might have.

	Debt Management Plan
Will my debts be cleared within a fixed period that is agreed from the start?	NO
Will interest be frozen so that my current debts don’t get any bigger?	NO *1
Can I change my payments if I have an unexpected expense?	YES
Do I still have to deal with my creditors myself?	NO
Will this affect all of my assets?	NO
Are my creditors likely to accept less than I owe them?	NO *2
Will I avoid losing the home I own?	YES
Am I protected by law from my unsecured* creditors?	NO
Will my creditors stop chasing me for payment?	NO *3
Will my creditors consider that I’m trying to do the honourable thing over my debts?	YES
Do I keep control of the settlement situation?	YES
Is the procedure confidential, preventing others from knowing my situation?	YES
Does my partner have to know?	NO
Will I avoid social stigma?	YES
Is the procedure administered by a licensed Insolvency Practitioner?	NO
Can my creditors be legally forced to go along with my chosen course of action?	NO