Setting up Payment plans for your debts might seem daunting at first but it is possible. If like me you are setting up your own debt management plan, payment plans are important as these plans become the arrangement you have with your creditors to pay off your debts.
What do you need to set up a Payment Plan?
Approaching this from a debt management plan point of view, you will need the following: -
- An offer of Repayment Letter to set up your Payment Plan.
- An Income and Expenditure Form so you can list your expenses and amounts owed to your other creditors.
- A guide on how to set up a Debt Management Plan.
Clicking on the Links above will take you to the required information.
How easy is it to set up a payment plan?
It is normally very easy based on my own experience, you would first work out what you can afford to pay then send this information to each creditor. You would use the Income and Expenditure Form and your Offer of Repayment Letter to make the offers and wait to hear back. After a short amount of time you would then receive confirmation of the Payment plan and the issue is resolved.
If you have priority debts and need to set up payment plans for those then it might be more difficult. You can find out more by clicking on the link below: -
What happens when you set up a Payment Plan?
You would first complete your income and expenditure form. This is a list of all your expenses, along with information about all your debts. Once you have this information you can then work out how much you have to pay towards your debts. The Income and Expenditure form will have a place to enter your debts along with how much you owe. It will then work out how much the payment will be for that particular debt.
Once you have completed the income and expenditure form you would then use the offer of repayment letter to make an offer of repayment. You could post this, fax it or e-mail it. After around a week or two, you would normally receive confirmation that your repayment proposal has been accepted and you would start making payments.
The Creditor has rejected my Payment Plan?
If this happens then start making your payments anyway. Write back to the creditor reiterating that you cannot afford to pay more than you currently do. In my own experience the creditor will normally accept your repayment proposal, either by you writing to reaffirm your position or because you have started making payments anyway.
It is also possible that the amounts you have put on your income and expenditure form are not realistic. For example you might have put something like nights out on the form, or put a figure of £100 per month for a hair cut. This wouldn’t be an acceptable expense and should be used to pay off your debts instead.
If you are still stuck then I would recommend seeking professional help. There is a link at the end of this post which will explain where you can find help with your debts.
I need help setting up a Payment Plan
Not to worry, there are a several organisations who can help you out with your debts. It might be that a Debt Management Plan is not suitable for you and other solutions such as an IVA or Bankruptcy are more appropriate. See the links below to help you get started with escaping your debt problems: -
Good luck with setting up your payment plan and as ever if you have any questions, please let me know.