Fee Free Debt Management Plan

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A Fee Free Debt Management Plan from ClearStart, or DMP as it is often known, is an informal solution for anyone who is in debt and struggling to meet their repayments. It is an arrangement with creditors that allows you to pay back what you can reasonably afford to pay each month in one affordable payment rather than a number of payments.

How does a Fee Free Debt Management Plan work?

One of our specialist debt advisers will review your situation to understand if a fee free Debt Management Plan could be a good option for you. They want to understand how much you can afford to pay towards your debts each month after you have paid all of your essential bills and accounted for day to day living costs. A single monthly payment will then be agreed between you and your creditors. Your repayments will typically be lower and over a longer period, enabling you to manage your debt more effectively. There are no fees to pay with your DMP, it is a fee free plan. We will negotiate with your creditors for our fee to be paid by them. They do not have to opt in to pay, if they don’t we will still act on your behalf and manage your plan. The important thing for you is that no fees will not be deducted from your payments.

Advantages of a Fee Free Debt Management Plan

One affordable monthly payment

100% of your monthly payment goes to clearing your unsecured debts

You will keep your home if you stick to the plan

We will deal with your creditors for you

The plan is confidential, no-one needs to know

ClearStart don't charge customers for their services

Things to consider

When considering a debt solution it is important to fully consider all of your options.

• Your DMP is an informal agreement and so your creditors can change their mind at any time.

• There is no legal protection from your creditors when you are in a DMP.

• Interest and charges may be added; making this decision is up to your creditors.

• Debts could increase if you don’t complete or adhere to the conditions of the DMP.

• Once your DMP has started, most creditors will apply a note to their records saying that you are on a DMP with us.

• Your creditors will share the amount that you are paying with credit reference agencies. If you are paying less than the required monthly payment, then you will find it harder to get further credit.

• You are responsible for your debts. Though we are managing your DMP, your creditors can still choose to take legal action, even if they have agreed to our offer of payment. However, most choose not to do so once you have started a DMP.

• You can’t include loans from family or friends in your DMP.

• If your debts are guaranteed by another person, the creditor may contact that person for additional payments. Please ask any person guaranteeing your debts to contact us if they need advice on this matter. If your debts are jointly held with another person, your creditor may contact that person for additional payments. Please ask any person jointly responsible for your debts to contact us if they need advice on this matter.

There are free sources of advice available to you. If you would like further details or advice, you can go to the Money Advice Service (www.moneyadviceservice.org.uk).

Is it right for me?

If you have debts of less than £9000 a Fee Free Debt Management Plan may be right for you

A Debt Management Plan is typically suitable for people who have unsecured debts of less than £9000 with more than two creditors. You should also have at least £90 a month disposable income to go towards your debts.

At ClearStart we believe it's important you get all of the right advice and support before you make a decision. That is why we don't charge fees for our initial advice. If you decide a Fee Free Debt Management Plan is right for you then you won't pay any fees for the lifetime of your plan as we negotiate with your creditors for our fee to be paid by them.

For confidential, no-obligation advice on the right debt solution for you, contact one of Clearstart’s Debt Specialists today. It could be your first step towards a Brighter Future.

What are the fees?

There are no fees for ClearStart Debt Management Plans

As opposed to other debt management companies who charge initial setup fees, monthly fees and annual review fees, ClearStart provides Debt Management Plans without any fees meaning no debt management setup fee, no monthly fees, no annual review fees and no hidden charges. Every penny you pay goes towards clearing your debts.

How does ClearStart offer a Fee Free Debt Management Plan?

ClearStart does not charge any fees for setting up or administering a debt management plan (DMP). We negotiate with your creditors to fund our costs meaning that all the money you pay goes directly towards paying off your debts. We also attempt to get interest and other charges frozen, although this cannot be guaranteed. Additionally, we don’t charge any fees even if a creditor does not agree to fund our services. We regularly deal with most of the top lenders which enable us to negotiate the best possible outcomes for our clients. Our aim is to help you get your finances under control with affordable payments, either monthly or weekly, that are made on a date that suits you, for example just after pay day.

Common Questions

What debts can be included in Debt Management Plan?

A Debt Management Plan includes all unsecured loans such as credit cards, personal loans, store cards and catalogue debts. Pay day loans can be included in Debt Management Plan but no secured debts like mortgage or a hire purchase car loan can be included.

How long does a Debt Management Plan last?

This depends on how much you owe, how much you can repay and what your creditors will agree to. There are no firm answers and things can change – ClearStart will work with you to try and ensure the best possible outcome.

Will it affect my credit rating?

Yes, your credit rating will be affected. Credit reference agencies such as Experian, Equifax and Call Credit maintain records of your credit accounts. Failure to maintain contractual payments towards any debts will result in a default notice being made on your credit file. These notices will remain on your credit file for 6 years (unless the creditor agrees to remove them prior to this) and may affect your ability to obtain credit.

More information

Do I have to accept the solutions offered?

No. You can seek further advice to understand the various debt solutions available to help you deal with your debt. However, if you are not satisfied, you don’t have to accept the plan offered and can seek out other debt service providers.

What if I change my mind?

You are under no obligation to proceed with any of the solutions we advise on. Should you change your mind once a plan has been put into place, you are provided with a cooling off period of 14 days under the Financial Services (Distance Marketing) Regulations 2004. Please see our Debt Management Terms of Business (PDF) for full details on your right to cancel.

Apply for a Fee Free DMP

Speak to one of our Debt Specialists today.