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The Debt Plan

A Debt plan is an agreement which decides how much an individual or family can pay their creditors each month.

Debts are consolidated into one affordable payment. This payment is made to your creditors once an agreement has been made. The plan can vary in length / time depending on the amount of debt and the monthly payment made. Interest is reduced or frozen during the plan.

Every 6 months a 'financial review' is carried out by your advisor. Your expenses may have changed so the plan may also need updating to suit your needs. Offers are then made on your behalf to creditors with the new changes (if there are any).

Every month a statement is sent, showing payments made to date, with any latest creditor and company news. Creditors may send you their monthly statements. This way you can keep up to date.

If your circumstances change, the Debt Plan Programme will change with you. Remember, this is your plan based on your figures - not on the creditors collection terms!

You need to have 2 debts and over £5000 outstanding to apply. No credit check will be made. All information is confidential and will not be passed to any third party.

  • If you have debts of £10,000 - we could reduce your payments to £120 per month*
  • If you have debts of £15,000 - we could reduce your payments to £160 per month*
  • If you have debts of £20,000 - we could reduce your payments to £250 per month*

The debt plans above are for example only. Please call us for further details of your own situation.

In some cases it is not a good idea to consolidate existing debts with another loan. That will just push you further into debt. The alternative approach is a debt plan. This is a tailored product that will help your regain control of your finances by:

  • Reducing your monthly repayments.
  • Allowing us to negotiate to lower or freeze interest each and every month.
  • Establish a low single monthly payment.
  • Dealing with your creditors and all of your paperwork.
  • Giving you one point of contact by assigning you a personal advisor
  • Our debt management plan is designed to deal with your loans or credit cards. You are assigned a personal advisor who will work with you, in confidence, to establish a financial statement. This will provide a complete picture of your income and expenditure and will allow us to identify a monthly figure that you can afford to pay after living and overhead costs are deducted.
  • No charge for advice
  • Totally flexible - you are not locked in for any number of years.
  • Easy to set up - can be up and running within hours.
  • No credit checking - Will not hurt your credit rating by repeated credit loan applications.
  • Interest and charges can be reduced or even stopped.
  • Puts more money in your pocket every month.
  • Our fees in debt management are more competitive than most of our competitors as we charge just the first monthly agreed payment and (usually 15% of the monthly payment with a minimum of £10) call us for further clarification.
Other Useful Information for debt Management Plans ONLY
  • Once the first payment has been received and cleared, your creditors will be contacted and asked to note on their system that NWD will now represent you and your financial situation.
  • We will, at that point ask for interest and charges to be frozen or significantly reduced depending on the financial relationship you have with the creditor.
  • As the debt plan is introduced there will be a temporary lapse in payment and this may (in some cases) lead to phone calls from creditors. (your card is attached that shows you how to handle these calls) however, once the payment plans are in place, your credit file will ultimately show regular payments which will help you in the future.
  • As you are aware, your creditors do have the option of taking county court action to recover their debts, they may also, as a matter of course issue default notices against your account in order to move that account to their collections department or an outside agency. You may receive unpleasant letters at this point which should not be ignored. They can, in some cases, impose further charges on the account which will, in the short term increase the debt, however, with regular monthly payments and the freezing of interest and charges, these debts will reduce over time.
  • As you know, obtaining further credit whilst in the debt plan, could be difficult and in some cases expensive. Our advice would be not to attempt to increase your level of debt whilst the Rebuild Programme is in place.
  • Your creditors do not have to accept our request to make interest and charges frozen. However, it is in their interests to do so, and it is also a legal requirement that they accept payments from NWD your legally appointed debt managers.
  • You have an absolute right to communicate with your creditors. However, we would advise you not get embroiled in long conversations. NWD are communicating with them, they are receiving payments and they will sometimes get very unpleasant with a view to gaining much larger payments than those being proposed by NWD. Remain polite, but firm and stick to the fact that NWD are acting on your behalf. Give them our number and ask them to call us. Any post you receive should also be sent straight to our office for us to handle. Your advisor will ensure you have a supply of prepaid envelopes.
  • It maybe good practice to bar all calls from 'number withheld' sources. BT, or your particular phone service can activate this for you.
  • Remember, this debt plan is flexible, if you want to increase the payment at any time, you can do, and if your circumstances change for the worse, we are also in a position to review and reduce your payment. You are also well within your rights to end this payment plan at anytime with no financial penalty, however, the first payment will always be retained as part of the set up costs of starting your programme.

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"I had debts of £30,000 and was paying £650 a month. I thought of Bankruptcy but found a better solution in I.V.A.. I now pay £310 a month and will be debt free in November 2014. I can now SLEEP AT NIGHT."
− Mr D. from Leeds