A debt management plan is an informal agreement which allows you to manage your finances by making one single monthly payment to us which we then distribute amongst your creditors.
Benefits:
- Invocas Financial will act as an agent between you and your creditors. We’ll contact your creditors on your behalf, arrange a repayment plan and deal with any correspondence
- You'll pay a single monthly payment making money management easier
- In some cases, we can negotiate frozen or reduced interest payments but this is not guaranteed
- There are no penalties for cancelling the debt management plan at any time
Things you need to know:
- A debt management plan lasts until all of your debt is clear
- We will retain the first two payments you make (subject to a maximum of £500 per month) as an initial set up fee. Following that, you will be charged a monthly administration fee which will be equal to 15% of your monthly contribution
- If you choose to cancel the arrangement, your creditors may revoke any commitment to reducing/freezing interest, therefore increasing the amount you owe
For more information on debt management plans, read our questions and answers.