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Debt Management Frequently Asked Questions - Debt, Consolidation, IVA, CCJ, FAQs

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Questions & Answers

How does debt management affect my credit rating?

If you already have a debt problem, it is likely that your credit rating has already been affected.

If you are unable to meet the original contracted terms of your credit agreement your creditors will register that you are in default. This will be recorded on your credit file and will normally be retained on your file for 6 years.

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What happens initially when I contact you?

Once you have completed the online contact form, an adviser will contact you and talk to you about your situation and answer any queries that you may have about the Debt Management service and to arrange with you a convenient time for us to call you to go through your financial details.

The time can be arranged whenever it is convenient for you, including weekends or in the evenings if you are unable to do this during the day. The call usually takes no more than 30 minutes and you will be under no obligation to go further should you choose not to.

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How much will my creditors get each month?

This will depend on how much disposable income you have

(i.e. the money left over after paying all your living expenses) and how much is owed to each creditor.

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My reduced payments are less than my interest charges, does this mean I'll be paying forever?

Many lenders will freeze interest charges when dealing with fee-free debt managers.

This they do this because they can see that you are making a genuine effort to pay your debts and are doing so with the assistance of a professional organisation.

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How long does the Plan last?

That will be determined by how much is owed and the amount you can realistically afford to pay your creditors each month.

You'll be given an indication of the likely length of the plan at the outset, but it will always be dependent on your creditors freezing interest and other charges on your accounts and your circumstances not changing.

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How do I know I'll be able to maintain the reduced monthly payments?

Any repayment proposal is agreed between you and your debt manager in advance.

It is based on the information you have supplied and takes into account all your finances. That is why it is imperative that you include all the information asked for.

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What happens if my circumstances change?

If this should happen whilst the plan is in place, please let us know immediately.

Depending on your situation a revised repayment plan will be negotiated with your creditors. As a matter of course, we will annually review your plan with you and amend your monthly payment if necessary.

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Useful Financial Links

Please find below some links that you may find useful from JST Financial. These links are to external sites and will open in a new window.

Consumer Direct from The Office of Fair Trading carries extensive Loans information, covering everything from Unsecured Loans to Right to Buy Mortgages.

MoneyMadeClear (The Financial Services Authority) offers a great, free to use Loans Calculator.

Trading Standards offer advice on taking out a loan and what your rights are.

If you know of any other links that you believe may be of use to our visitors, please contact us.