DebtFree Haven

Our structured Debt Management Plan offers you a way of dealing with debt, helping spread your financial pressures. If you find you are unable to make your full monthly repayments we can negotiate a plan with your creditors based on your disposable income; disposable income is any money left over after covering your general living expenses.

DebtFree Haven makes the entire process easier by negotiating directly with your creditors and taking over the worry of missed installments. You only need to remember to make one monthly payment to us, and we will distribute this between all your creditors on a pro rata basis.

Potential advantages

• Interest and charges can in certain instances be frozen at the discretion of the creditors.
• You only pay what you can afford, based on your Income and Expenditure.
• As we take over direct contact with your creditors, you will no longer need to worry about harassment, letters and calls chasing you for outstanding payments
• We work with you so you are able to manage this on a monthly basis.
• You pay only one monthly installment which we manage on your behalf so you don't have to worry about missing payments
• You can review your options at anytime if for example, your circumstances have changed for the better or worse.

Potential disadvantages

• Any delay in payment to creditors including retention of monthly payments as upfront fees may result in your going into, or further into arrears or may lengthen the repayment period.
• There may be an increase in the total sum to be repaid if you ignore your creditors for a long time in coming to a suitable plan.
• It will probably take a number of years to pay off if you have a very high level of debt. We can advise on alternative solutions.
• A DMP isn't legally binding so creditors are not obligated to accept, although in majority of cases they do come to an agreement.
• The agreement is reviewed by the creditors every 6 - 12 months.
• Please note that any form of negotiated repayment plan with your creditors instead of paying the full contracted amount will have a negative effect on your credit rating; however, it is always better to be seen to be making some form of regular payments.
• As with all our plans, the setting up of a DMP will incur fees from the outset.
• If the debts are secured on your house or other asset, it could be taken from you (repossessed) if you do not keep up the full agreed repayments.
• Interest rates often change over the loan period, making it difficult to work out what the total cost of the loan will be.
• If you don't clear all your existing borrowing under the DMP or any other solution, any new borrowing is likely to make your debt problems worse and make it more difficult for you to manage all your repayments.
• DMPs are often arranged over a longer period of time than your original debts because you are repaying a lower amount.
• Even though you may become debt free at the end of the period of one of the plans, the effect on the credit rating is likely to remain on file for 6 years.