Informal Repayment Plan
An Informal Repayment Plan is similar to an IVA in that it is an agreed deal between you and your creditor. It can be used by anyone with a debt problem; however, it is best suited to those with debts of less that £15,000 with less than four different creditors. It is recommended you should be able to afford a total monthly payment of at least 1% of your total debt.
Complete the enquiry form, an advisor will call you back and will give you help and advice, their main aim is to find the best solutions for your own personal debt problems.
Advantages:- It's quick and easy to put in place.
- Monthly repayments are reduced to an affordable amount thus stopping the need to constantly borrow money to pay debts and further deepen your overall debt.
- Your assets are unlikely to be taken into account e.g. property equity.
- Using the services of a Debt Management company may mean that you can consolidate all debts into a single affordable monthly payment.
Disadvantages:
- Creditors have no legal obligation to stop adding interest and late payment charges, which means your debt could increase over time.
- You may have to continue paying until ALL the debt is paid in full, even if that takes you 10 years or more.
- Creditors may take further action against you at any time or ask for a reassessment of your circumstances.
