What is debt management???

An informal agreement formed by RMS between you and your creditors to manage ur debts. A Debt Management Plan (DMP) is a repayment plan that helps make unsecured debt repayment affordable. A third party works on ur behalf to negotiates with creditors to reduce your monthly payments to a more manageable level.

The aim of Debt Management is to help you clear your debts at a reduced level over a fixed period of time to help you make a fresh start with your finances.

Reasons to take a debt management plan???

• Debt Spiral
• Loss of Income/ Redundancy
• Poor Financial Management
• Divorce/Separation
• Illness [Physical/Mental]
• Birth
• Retirement
• Accident
• Unemployment
• Other

Benefits from Debt Management Plan

• Freeze or reduce the level of interest on your debts
• More flexible than IVA
• Donít have to deal with the creditors anymore
• Reduces the monthly installment to one and as affordable accordingly
• No legal binding restrictions
• Informal Agreement
• Control of your debts without a loan

If I want to leave the programme will I be charged?

No. There is no charge for leaving our Debt Management Programme, but we do ask for two weeks' written notice. This gives us time to inform your creditors and ensure a smooth transition back to you. Your initial payment covers the cost of setting up our Debt Management Programme.

Can belonging to a Debt Management Programme damage my credit history?

Joining our Debt Management Programme wonít directly affect your credit rating. However, if you are experiencing financial difficulty your credit rating may have already been affected.

Any of your creditors may issue a default notice to register the fact that your original agreement with them has not been maintained, and the credit reference agencies provide information about your full financial history to other potential lenders.

Can I be sure my creditors will accept the arrangement?

We're in daily contact with creditors and have built up excellent working relationships with them. Many years of experience have shown that most creditors welcome a reasonable payment proposal that's agreeable to both parties. Whilst we are able to negotiate reduced payment terms and the freezing or reduction of interest on your behalf, creditors are not obliged to freeze or reduce interest or to accept reduced repayment arrangements – and unless they do, repaying the same debt over a longer period of time will result in an increase in the total amount you have to repay.

What do I pay the management fee for?

Repayment Management Services offers a dedicated service designed to suit your individual needs. Using our freephone telephone line will put you in touch with a fully trained Initial Adviser who will make a detailed assessment of your financial situation and offer the most appropriate debt management solution for you. Our Creditor Liaison Department works very closely with the credit industry, using their skill and experience to negotiate suitable repayment arrangements on your behalf. The day-to-day management of your account will be dealt with by your own Personal Finance Manager who will also be on hand to answer any queries or concerns you might have.

We will keep you up to date with our progress through regular correspondence and detailed regular payment statements. Throughout your Debt Management Programme we will carry out regular reviews of your finances and negotiate new arrangements with your creditors whenever your situation changes. Above all, you'll have the peace of mind that comes with knowing that your finances are being managed professionally and your creditors are being repaid regularly at an amount that is affordable to you.

How much do I pay?

At Repayment Management Services, we are committed to being completely clear and open about the charges for our services. Your first monthly payment is an initial fee for setting up our Payment Programme and is not paid to your creditors. This will place your accounts into arrears or further into arrears. There's a monthly fee of 15% included as part of your affordable monthly payment. The set-up fee includes:

• Compilation of the Draft Programme
• Appointment of a dedicated Personal Finance Manager
• Communication with your creditors either in writing or by telephone
• Preparation of the financial statement
• Calculation and issue of the reduced repayment proposals

The initial fee is not refundable. However, we do give you a 14 day "cooling-off" period so you can be sure you've made the right decision. If you decide to withdraw from the Debt Management Programme within 14 working days from the day you confirm acceptance of our business terms or, if earlier, from the date we receive your first monthly payment, we'll refund your initial fee.

Why can't I negotiate with creditors myself?

You can. Repayment Management Services is here as an alternative because many people don't feel equipped to negotiate for themselves, or they're too busy, stressed, emotional or depressed to deal with creditors. Sometimes the relationship with your creditors may have broken down, or you are simply unable to meet your creditors' demands. That's where we can step in on your behalf.

Will I end up paying for longer?

Because we negotiate lower monthly repayments on your behalf, your debt will take longer to repay – however, the repayments will be affordable.

Our programme is only offered to clients who, because of their financial circumstances, cannot afford to make the minimum payments required by their creditors each month. Our service allows you to make an affordable payment, every month, towards reducing each of your debts – instead of continuing to struggle, having to miss payments and incurring additional charges.

The programme is focused on you and your ability to pay, and if your circumstances change, then Repayment Management Services can revise your programme accordingly.