Debt Management FAQ / Guides
Our experience in debt management means we have developed long-standing
relationships with a multitude of established creditors, such that our
Debt Management Plans can often help to freeze or reduce interest and other
additional charges, unlike many other debt consolidation services - though
this cannot be guaranteed. Furthermore, your Debt Management Plan can be
adjusted (or even cancelled) at any time – without penalty – just as your
circumstances may change. Debt management is not a loan.
Debt Management Process
- Client makes 1 monthly payment based on their affordability.
- Client first 3 payments in a plan are set up fees.
- Once the client makes there 1st payment into the plan the creditors
receive a letter from Immediate Financial requesting up to date
balances the
creditors also receive a authorisation to act letter.
- Once the 2nd payment is made the creditors receive a financial statement, with
a payment offer based on proportionality at this point
immediate financial
request interest and charges are frozen.
- On receipt of the 4th payment the creditors receive a payment
Pro's of a Debt Management Plan
- Reduced monthly payments.
- Interest and charges can be frozen however it’s not guaranteed.
Con's of a Debt Management Plan
- No payment to creditors for the 1st 3 months.
- Creditors will phone to try to collect money from the client.
- Debt plans need to be negotiated with creditors on a regular basis.
- With debt management fees the debt levels increases.
What are the minimum criteria for an IVA?
- Client must not be able to make their contractual payments.
- Debt management needs to be the best option for the client.
- Client must have £2500 of debt minimum.
- Client must have a disposable income of £80 or more.