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Debt Management Plan

How do I know if I need professional help?

Anyone who is missing payments or struggling to cope with the demands of creditors should seek professional advice straight away. The sooner IDS knows your situation the quicker we are able to help. Our experienced advisors can asses your situation quickly and just one phone call can get you back on track. You are not alone, IDS speaks to people in your shoes everyday.

I don’t want anyone else to know about my debt problems?

At IDS we understand the stigma surrounding financial difficulty and people who are struggling are often left to cope with their problems alone. Everything you tell us at IDS is completely confidential. We follow strict data protection regulations and will not discuss your situation with anyone other than you. To ensure complete security you can choose how we contact you, whether it is via telephone, text, or email and at what times of the day is most convenient.

Do I have to pay IDS and my creditors?

No you only have to make payments directly to IDS instead of your creditors. We will then distribute this money to your creditors each and every month on a pro rata basis. This way your creditors will get a share of what money you have available to repay your debt.

Will I be taking out a new loan to clear my other debts?

No. A Debt Management Plan is a way of helping you make affordable payments to your existing creditors. IDS cannot provide you with a loan.

How does the plan pay off my debts without lending me any money?

We will assess your income and outgoings and ultimately prove to your creditors that you cannot meet all of your payments. We will then negotiate and agree a single new affordable monthly payment. From this payment we will then distribute an amount to each creditor on a “pro-rata” basis.

How much will I need to pay?

This depends on what you can afford. We take into account your income minus all of your essential living costs to ensure that you can meet your expenditure commitments such as Rent, Council Tax, Utility bills. We will conduct regular reviews of your financial situation to account for any changes in your circumstances.

Will you be dealing with every company I owe money to?

No, we will deal with all of your un-secured credit and non-priority debts. These include personal loans, overdrafts, credit cards, store cards and catalogues etc. It is vital that you continue to make payments to your secured and priority debts as there are serious consequences to not maintaining regular monthly payments. These include any loans secured on your property, HP agreements, rent/mortgage, council tax and utility bills. When calculating your monthly repayment, we make allowances for these items to ensure you can afford to pay them.

Will my creditors/lenders definitely accept your proposed plan?

Creditors and lenders do not have to accept our proposals, but most are willing to accept them if we can prove it is beneficial and agreeable to both parties. Please note that there is no guarantee that existing or threatened proceedings will be suspended or withdrawn. Your creditors may also continue to issue default notices and add additional costs to your debt. You can rest assured that we will do all we can to ensure your creditors understand the difficulties you are in, to ensure the best possible outcome.

How long will the plan last?

This really depends on how much you owe and your agreed monthly repayments. Making reduced payments will extend the length of time it takes to clear your debts and if your creditors refuse to freeze interest, paying the same debt over a longer period of time will increase the total amount to be paid. We aim to help you complete your plan as soon as possible so we will keep you updated on any other solution that we feel may be of benefit to you…

What should I do if I can’t afford my payment to IDS?

When you start your plan we try to ensure that you have enough money to pay for your outgoings so that you are able to maintain your monthly payments to IDS. However, if an unexpected situation arises and you cannot afford your payment you must contact us immediately and we will work with you to find alternative arrangements. Failure to maintain payments may result in creditors withdrawing from arrangements.

Should I deal with my creditors myself while in the plan?

You can if you wish; however, most people prefer to leave that to us as it is part of the service we provide. Either way, you should keep us informed of all contact made between you and your creditors, including forwarding copies of all correspondence from your creditors. Please do not ignore your creditor letters, forward them to us as soon as possible.

Will agreeing to the plan affect my credit rating?

Your credit rating may already be affected if you have been having difficulties making payments to your creditors. Failing to maintain agreements with creditors may result in them issuing you with a default notice which is registered with credit reference agencies, informing potential lenders of your credit history. It is very important that you do not try to take out any further credit until you have repaid your existing debts.

What does the Debt Management service cost?

Here at IDS we are committed to remaining completely transparent about our charges for the services we provide. We charge an initial set up fee and monthly management fee, both of which are detailed in our enclosed terms of business and will be explained in detail when you call.

What are the fee’s charged by IDS?

The basis of our fee’s are contained in the terms and conditions which are accessible on our website.

What do I pay the fees for?

You are paying for a professional, personal service and employing our skill, expertise and experience of dealing in the finance industry. This ultimately provides you with peace of mind that your creditors are being paid regularly and at an amount that you can afford.

Will I be charged if I change my mind?

We will provide you with a 14 day “cooling off” period from the date you accept our Terms and Conditions or, if earlier, from the date your first payment is received. If you decide not to continue with the plan within the first 14 days, we will refund your initial fee.

What if my circumstances change during the plan?

All you need to do is contact your dedicated personal account manager who will complete a financial review. The debt management plan is designed to suit your individual needs, allowing flexibility in your payments.

Should I stop all of my direct debits?

No. Please do not cancel any payment arrangements to your creditors until you receive confirmation that your new plan has been accepted.

Service FAQs

Here are the most common questions asked in relation to the debt services we provide.

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FAQ

If you have more questions than you have answers when it comes to your current debt situation, see if this section helps.

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Glossary

Don’t be confused by the terminology. Find out what these terms mean by checking out our glossary page. All will be explained.

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