A Debt Management Plan or a DMP is where Fresh Start UK takes over all dealings with your creditors and their debt collectors, so you only deal with us direct. We can’t guarantee creditors will not contact you and we can’t guarantee they will accept the offers made, but we can guarantee a Debt Management Plan (DMP) with Fresh Start UK will minimise the calls and letter you do get. We use our experience and good relationships with creditors to agree the best repayment for you at an amount YOU have agreed.
We are always clear and honest with our clients about fees as well as the total cost of your plan. We cover this in your initial call with us, in your Debt Management Agreement (DMA) as well as your Statement of Affairs and Monthly receipt.
No, once you enter into the Debt Management Plan (DMP) with us, we will contact all of your creditors within 24 hours. We work very fast to make sure you don’t have to worry about getting lots of calls and letters about debt. If you have Payday Loan debts we know getting agreement set quickly is key and as we specialise in Payday Loan Debt Advice and Debt Management we can get agreements in place, payments from your account stopped very quickly in most cases.
We aim to stop all interest and charges to your accounts once we take them over and have a fantastic track record. Creditors are not obliged to stop or reduce interest and charges but we have excellent knowledge of the debt industry and strong relationships with creditors, we can often get them to stop all interest charges and fees as long as regular payments are made and kept to through Fresh Start UK.
There are many forms of free advice on how to manage your finances and deal with your debts. Fresh Start UK offers free initial advice, but charge a fee for some services after. If you are looking for free advice and a free to consumer service then you can speak to the Money Advice Service (MAS), Step Change or many other free advice organisation.
Yes, this is charged from month 1 onwards. This fee is taken from your payment, not on top, so you are still able to pay what you can afford. This fee is based on the work needed on your account, we believe the fairest way of calculating, and is based on the number of debts in your plan. This fees covers the ongoing work on your account. The fee during the first 6 months is higher as this is when most of the work is carried out.
Do I make just one payment each month?
Yes, it’s so easy, you make one simple payment to us and we make sure all of your creditors are paid on time. You don’t have to have a bank account either. If you do want to pay weekly or fortnightly then we can accept these payments too.
Yes, every month, after your payments have been made to your creditors, we will send you a statement. This will be a receipt for the payment made and the new balances of your debts so you can see where your money is going and your debt going down.
All offers of repayment are justified with details of your financial information so a creditor can see you are paying the most you can afford in your situation, so most companies will accept the offer we put to them. If any company refuses an offer we make, then we will contact you and let you know and then provide you with the best help and advice on what to do next.
An IVA (Individual Voluntary Arrangement) is subject to legal process and acceptance of the proposal is not guaranteed. The Insolvency Practitioner will negotiate the best rates at the creditors meeting but is unable to guarantee they will accept what is offered.
Bankruptcy is similar to an IVA and as a form of Insolvency the outcome is not guaranteed.
Once we get in touch with all of your creditors you should receive noticeably less calls and letters. Your creditors by law will have to write to you to keep you notified of what is happening with your account, but we explain and deal with all letters and calls for you so you don’t have to worry.
IVA & Bankruptcy
Once the IVA (Individual Voluntary Arrangement) or Bankruptcy order has been approved your creditors will not be legally able to contact you. If they need to provide you information they would have to go through your appointed Insolvency Practitioner.
Once an account has defaulted from its original agreement the creditor will normally mark this on your credit file accordingly. Entering into a Debt Management Plan (DMP) will not have any effect on your credit rating as it has already defaulted. Once regular payments are being received your credit file will show this and it will start to help repair the damaging affect of the default. The affect on your credit rating will be in the short-term and possibly the mid and long-term.
IVA & Bankruptcy
An IVA (Individual Voluntary Arrangement) and Bankruptcy are both forms of Insolvency and consequently have much greater negative impact on your credit rating than Debt Management. The impact in your rating is for 6 years, even though the solution may be for less.
Debt Management Customers
We have terms of agreement, so you know what we will do for you and what you need to do, but you are not contracted for any time period. Our Cooling-off period should give you the peace of mind you need too.
We make the process as easy as possible for you to change over to Fresh start UK. We understand that you want the process to be very quick and not to cause you any hassle… and why should you expect any less. All of our Debt Management Plans (DMPs) are set-up within 24 hours of receiving all of your paperwork back. That means if you post it Monday, (we send prepaid 1st class return envelopes) we get it Tuesday and by the end of Tuesday all of your creditors have been updated. Quick and easy.
An IVA is an Individual Voluntary Arrangement and is a form of Insolvency. An IVA is a formal and legal agreement made with your creditors through an approved Insolvency Practitioner. An IVA is typically 5 years and will be based on consistent payments being made at a fixed amount over that time. Upon completion of the IVA a discount is given, it’s size depends on what was agreed in the creditors meeting.
During the IVA creditors must stop all interest and they are not allowed to contact you directly. As a formal and legal agreement the IVA cannot be broken by the creditors, providing the agreed IVA payments are maintained.
Can you add HMRC Tax, VAT and other Crown Debt into a Debt Management Plan (DMP)?
Fresh Start UK are one of the few Debt Management Companies that will take on most forms of debt, including HMRC Debt, for Tax, VAT, Council Tax and CSA.
It is important you know that we will only do this were it is in your best interest, we can genuinely help you and we have explained how the service works.
We will also only deal with these accounts in a plan with other ‘typical debts’ as part of our service. We reserve the right to decline dealing with certain accounts.
An IVA (Individual Voluntary Arrangement) is usually over 5 years and the amount paid monthly will always be different. What you pay into an IVA will depend on your particular situation, but we have provided an example below.
The above is an example only, many people often pay less per month and have greater discounts. However, an IVA is a form of Insolvency and being able to afford to pay does not mean you are necessarily eligible. Contact us further information.
In Debt Management there is virtually no risk of you losing your home due to the plan. Creditor are able to take legal action against you if they wish. but this is still unlikely.
In an IVA (Individual Voluntary Arrangement) there is a risk of losing your home, but this is assessed initially and you are informed of the risk specifically to you, in advance. The greater your negative equity is the less likelihood of you losing your house there will be. If you have equity or a large amount of equity then you would quite possibly have to either release the equity, sell or offer the house in the IVA agreement.
If the mortgage is in more than one name and the IVA is for only one of the named, there is sometimes an option to sell your equity stake to the other mortgage holder, leaving your house protected.
In Bankruptcy there is a risk of losing your home. The greater your negative equity is the less likelihood of you losing your house there will be. If you have equity or a large amount of equity then you would quite possibly have to either release the equity, sell or offer the house in the Bankruptcy offering.
If the mortgage is in more than one name and the Bankruptcy order is for only one of the named, there is sometimes an option to sell your equity stake to the other mortgage holder, leaving your house protected.
Bankruptcy is a form of Insolvency and enables people with no means of getting out of debt was way to make a Fresh Start in life. Bankruptcy is a formal legal process and should never be entered into without proper consideration and all the facts.
Most Bankruptcy orders last for 1 year and after you are discharged, all of the debts included in the order will be cleared and you will never have to pay them back.
Depending on your situation, cost can vary greatly for Bankruptcy. You do not pay a monthly cost or fee in most cases, as you would do in Debt Management or for an IVA. Bankruptcy is usually paid at the start of the process. You have to pay the court fees and the fees of the administrator and then give up any unnecessary or unreasonable assets. Everyday essentials are allowed, such as cloths, furniture and cheap cars. But if you’re driving around in a Porsche and wearing a Rolex then they are put into the Bankruptcy.
Over recent years we have seen increasing numbers of people looking for help and advice with Payday Loans. We now specialise in Payday Loan Debt Management and Debt Advice, as the majority of the accounts we deal with are these types. Over time we have built good relationships with these companies, often enabling us to get agreements in place much quicker, interest, charges and calls to work stopped. We have also got the expertise to advice you how to stop these companies taking payments from your bank accounts without changing bank as many companies would advise. Call or email for further information about your Payday Loans and we will help break the cycle.
We believe we go above and beyond at Fresh Start UK, as we base all of our dealing and relationships on clear and honest information we don’t want anyone to be unhappy. We do understand that we can’t always get it right for everyone, so we ensure our contract with you are not for a fixed term, but only for as long as you need and want our help. You can cancel your account with us at any time either by call, posted letter or email.
We have a 14 day Cooling off Period which enables you to get a full refund of any money paid to us. Full details are in our terms and conditions. For further details see our Terms and Conditions.