What is Debt Management? Client must have minimum of 2 credit agreements with debt of £3000 plus Client must have disposable income of £125 per month an informal agreement with creditors repay debts with one affordable payment payment calculated on disposable income before unsecured debt payments agreement not legally binding agreement negotiable and reviewable at any time potential to reduce payments to a more affordable level most lenders will freeze interest but are not obliged to do so should prevent legal action by lender PTDS negotiates with all creditors to reduce the payments PTDS manage payments on behalf of client on entering into a debt management plan, the first payments acts as the initial fee which means that the creditor accounts will go into or further into arrears if the creditors agree to a reduction in the contractual monthly payment, this will mean that the repayment period for the relative accounts with be extended as the monthly fee for management of the plan is deducted from the monthly payments, the amount repaid over the total period may amount to more than the origional amount creditors may add additional charges The client's file and circumstances will be reviewed every 6 months to ensure that debt management continues to be the best solution and that threre isn't an alternative improved solution available The client's file and circumstances will be reviewed every 6 months to ensure that debt management continues to be the best solution and that threre isn't an alternative improved solution available Fees payable the initial fee charged is the first monthly payment of the debt management plan a fee of 15%, or £25 (whichever is greater) is charged thereafter for the management of the plan an advice fee of £285 may be charged which will be payable by 3 installments of £95 added to the agreed debt management monthly payment Important Documents The Insolvency Service's Guide: In Debt? Dealing with your Creditors Terms and Conditions Cancellation Procedure A debt management plan may not prevent further creditor action which may include bankruptcy