Frequently Asked Questions
How do I contact My Payment Plan?
It's easy to talk to one of our advisors. Just call 0114 292 2406 between the hours of 9am and 5.30pm Monday to Friday. We offer free debt advice and help which means we will not ask you to pay any up front fees when you contact us.
Do creditors always accept reduced payment offers?
When you make a reduced offer of payment your creditors have to take your circumstances into account when deciding what to do. They must treat you fairly. With our experience in dealing with customers and your creditors, we will negotiate a payment plan with your creditors and discuss their comments with you.
What if my creditors continue to contact me for payments?
Initially, you may still get letters and phone calls from your creditors. This happens because it takes a short time to negotiate with your creditors and they will continue with their standard collection activities until a new repayment amount is agreed. As soon as we have received your signed Letter of Authority and your first payment, you can tell your creditors to contact us. We will then be happy to deal with all letters and phone calls for you. Please note that we cannot guarantee that creditors will permanently cease to contact you - they are still entitled to do so. Do not ignore them, ask them to contact us. Once your creditors are informed we are dealing on your behalf many of them will start to communicate directly with us, taking a lot of pressure off you. We will keep you informed of any communication we have with your creditors. Once your creditors are informed we are dealing on your behalf many of them will start to communicate directly with us, taking a lot of pressure off you. We will keep you informed of any communication we have with your creditors.
Will I receive a Default Notice?
Creditors may still send a default notice to you to protect their own legal position. However, the advisors at My Payment Plan will negotiate with your creditors with a view to preventing any further action being taken.
Will the plan affect my credit rating?
You should expect your credit rating to be adversely affected if you are unable to make contractual payments to your unsecured creditors whether or not you are in a Debt Management Plan.
Can I take out a plan if I already have CCJs against me?
Yes. You can even use the plan to make payments against any existing CCJs that you have.
Can I take out a plan if I am a homeowner or tenant?
Yes. It makes no difference whether you are a tenant or homeowner or even if you are still living with your parents.
Does the Payment Plan cover all of my debts?
A Debt Management Plan can only cover your unsecured debts .When assessing your financial situation, we make suitable allowances for you to be able to afford your priority debts and your day-to-day living costs before we calculate how much you can afford to pay towards your other creditors.
Do I need to cancel my direct debits?
As soon as we have advised you that your Plan is in place you should cancel all standing orders, direct debits and other regular payments to your unsecured creditors.
Do I need to change banks?
If you have a credit facility like an overdraft or loan, they may take steps to collect the money owed to them as soon as your salary or any other payment is paid into your account with them. In these circumstances, we recommend that you open a separate bank account where you will not require any lending facilities.
How much does the service cost?
We charge an initial set-up fee which is normally equivalent to two monthly payments (subject to a minimum of £225). This set up fee is retained by us to cover the costs of setting up your plan and contacting your creditors. We then take a monthly management fee equivalent to 17.625% of each payment you make to us, subject to a monthly minimum of £35 and a monthly maximum of £100. The set-up fee includes:
- Drafting of your payment plan
- Communication with your creditors, either in writing or by telephone
- Calculation and issue of the reduced payment proposals
- Preparation of the financial statement
What if my circumstances change?
Please contact us immediately should your circumstances change in order that we can assess whether we need to renegotiate payments to your creditors or seek an alternative solution for you.
A Debt Management Plan assists you in
making reduced monthly payments to your
unsecured creditors over a number of years.
There is no need to hide your debt problems. My Payment Plan are here to help.
Our advisors can help give you peace of mind and provide you with the debt advice you need to relieve the burden of your debts.