Debt Management FAQ

What is a debt management plan?

A debt management plan is a simple and effective way to pay your non-priority debts (e.g. credit cards and unsecured loans).

Your MRA debt counsellor will calculate how much you can afford to pay your non-priority debts after your priority debts have been taken into consideration. e.g. mortgage, utility bills, council tax etc.

Can anyone have a Debt Management Plan (DMP)?

A Debt Management Plan is a serious debt solution, and while it can help in many circumstances it is not suitable for everyone. For example, if you have very low surplus income after paying the most basic living costs, it may be unsuitable. If a debt management plan is not suitable for you, our debt counsellors will point you in the direction of your most suitable debt solution, which may be Bankruptcy, an IVA, or a free debt management plan from a charity such as CCCS.

To find out if you could benefit, please book an appointment with one of our trained debt counsellors or call 0800 612 92 23.

How long does a DMP last?

This depends on the level of debt you have and the amount you can comfortably afford to pay each month. If your creditors do not agree to reduce interest, paying your debt over a longer period of time could cost you more in the long term.

Is the level of debt repayment fixed throughout?

No. Flexibility is one of the great advantages of a Debt Management Plan. If your income reduces, we can renegotiate to try to reduce your payments. Alternatively, if your income increases we can arrange to increase your payments and pay off your debts quicker.

Your Debt Management Plan will be regularly reviewed to check that it meets your needs.

How do I know when my creditors will be paid?

You will receive a monthly statement showing exactly what has been paid to each creditor and how much debt is left to pay.

Will Debt Management harm my credit rating?

Yes. Debt Management is far friendlier to your credit rating than other debt solutions such as Bankruptcy or an IVA, but it will still affect your credit rating in the short term, and may also affect it in the medium to long term. If your situation is serious enough to warrant a debt management plan, then it is likely that your credit rating has already suffered. Once your debts have been repaid, your credit rating will start to heal itself.

Will creditors stop charging me interest?

Your creditors are not legally obliged to reduce or stop interest charges on your account. MRA Debt Help have a good working relationship with many creditors and aim to reduce or stop interest charges for all DMP accounts

Do my creditors have to accept the offers being made?

Your creditors are not legally obliged to, but many do accept our offers. We draw up a Financial Statement showing that the offer being made is the most you can reasonably afford to give them. We can also send them details of the payments being made to your other creditors so they can feel assured that they are being dealt with fairly.

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0800 612 92 23

Mike Robertson Associates Business Solutions Ltd, 3 Old Ladies Court, High Street, Battle, East Sussex. TN33 0AH

Our offices are located near Hastings, Eastbourne, Lewes, Brighton and Tunbridge Wells