Invocas Financial

A debt management plan is an informal arrangement that is negotiated between you and your creditors. It enables you to make one single monthly payment and in some cases arrangements can be made for interest to be frozen or reduced, but this is not guaranteed.

As long as you have a level of monthly disposable income, after deducting living expenses, you can consider this solution.

If your debts aren't particularly high, this solution may be favoured by your creditors over a more formal solution.

The plan only includes unsecured debts, for example, credit cards, store cards, bank loans and overdrafts. If you have problems with secured debt, we may be able to advise you on what to do but it won’t be included if you choose this debt solution.

The length of time depends on the amount of debt you have, the amount you can afford to repay each month and the agreement reached with your creditors, as well as, the fees that you will need to pay.

It is likely the debt management plan will have an effect on your credit rating because you'll not be making your contracted repayments to your creditors. It may be worth getting a copy of your credit report to see whether your credit rating has already been affected. If you are on a debt management plan, you should be aware that you may find it difficult to get credit in the short term - and possibly in the medium to long term.

Yes, in most cases, the first two payments you make will be retained (subject to a maximum amount per month which will vary from company to company) as an initial set up fee.  This will mean you go into arrears (or further into arrears).  Following that, you will be charged a monthly administration fee which is usually a % of your monthly contribution.

Take the first step to turning your debt around. By completing our online enquiry form, we will advise whether we can help you with a debt solution and arrange a time to contact you to talk through the options.