A debt management plan is an informal agreement between a debtor and their creditors, organised through a debt management company like Ashley Park. A debt management plan allows you to consolidate your unsecured debts without taking out further credit such as a loan.

When you apply for Debt Management, Ashley Park will negotiate lower monthly repayments with your creditors on the debts you owe, we will also negotiate that interest and charges be frozen on your account whilst on the plan.

No, with a debt management plan there is no need to obtain further credit.

Yes, as your repayments will be lower, this will mean that you will be paying your debt over a longer period of time. However in most cases we can negotiate that interest and charges be stopped so your debt will not increase.

Debt Management plans only cover your unsecured debts, such as credit cards, store cards and personal loans amongst others, although we take into consideration any legal accounts and secured loans too.

Creditors do not have to accept any agreements proposed through a debt management plan. By applying to a debt management company like ourselves though, you have proven a willingness to repay your debts in some form and creditors usually respond favourably to that. Ashley Park have developed good relationships with creditors and this usually proves advantageous to our clients.

As you are not making the repayments originally agreed on your debts, then that may affect your credit rating. However if you have already been turned down for credit or are failing to meet your repayments then your credit rating may already be poor.

With that being said a debt management plan will show that you are making regular repayments and this will have a positive affect on your credit rating over a longer period of time.

Once we have all the information we require from you, a debt management plan can be set-up within 24 hours.

Debt Management is subject to two costs, a one-off set-up fee and a regular monthly management fee.

When you sign up to a Debt Management Plan, your first two initial repayments are made to us. This is an administration charge and covers the setting up of your account, including negotiating with your creditors and organising the right documentation for you. This administration charge is the equivalent of two monthly repayments whilst on the plan.

Once you are on the plan, our monthly management fee is 17.62% of your regular monthly repayment. However this comes with a minimum and maximum fee bracket. The minimum fee we will charge is set at £25.00 whilst the maximum fee is £100.00.

It is advisable that you cancel direct debits once you are on the debt management plan to avoid the possibility of paying twice. Rather than paying your creditors separately, once on the plan you will pay Ashley Park one monthly fee and we will distribute that to your creditors.

If the bank you are currently with is one of your creditors then it is advisable that you open a bank account with another bank that you do not have debts with. You should contact Ashley Park with any questions about bank accounts and charges.

As a Debt Management Plan is an informal arrangement, it is possible to change your level of repayments should your circumstances change.

If you decide to come off our debt management plan you will need to inform us in writing and we will send you the appropriate forms to sign.