Debt Management

What is a Debt Management Plan?

A Debt Management Plan with TDC means we manage your debts for you. Just tell us who you owe money to, how much you owe and how much you can afford to pay each month (this information is taken over the phone when you call us). We then look after your debt. TDC will negotiate with your creditors to agree affordable monthly repayments. We make the payments to your creditors on your behalf to reduce and clear your debts.

You make one single affordable payment to us each week/month and we pay your creditors. With debt management your debts steadily reduce until you have repaid what you owe. The whole point is to make things manageable, to reduce the payment and to stop interest and further action where possible.

We have been in the industry for many years and have built up a network of contacts with all the major lenders. This helps deal with queries faster than going direct to the creditors collection units.

We have found in many cases, creditors will offer Full and Final settlement of the debt. This can be a small amount of a few hundred pounds or a larger amount. It is all down to negotiation (and if you have a pot of funds available from a bonus or family members, let us know while in the plan and we will negotiate a settlement for you).

DMP FAQs

Is Debt Management the same as debt consolidation?
A. Not at all. A DMP a repayment plan where we provide ongoing help and guidance so you can clear your debts without a further high interest loan. We look at your income and expenditure, helping you figure out what you can afford to pay every month. Then, once we have spoken to your creditors, we do all the administration, handle all letters and phone calls and distribute your payments on a pro rata basis.

Will you manage all my debts?
A. No. We manage your non-priority debts: your unsecured credit such as credit cards and store cards to overdrafts and personal loans. We do not deal with your priority debts, such as your rent / mortgage, your utility bills and any loan secured against your home. These are the most important debts, as the consequences of not paying them can be so severe. It's essential you keep making these payments yourself, so we take them into account when we're calculating how much you can put towards your debt plan every month.

If I join the TDC debt management plan, will it take me longer to pay my debts off?
A. Yes. When you join the plan, we ask your creditors to accept lower payments – making your life a lot easier and greatly reducing the risk of incurring charges by missing payments. However, because you’re paying your debts back more slowly, it will take longer to put them behind you. Our plan aims to help people who find it very hard to make their minimum monthly payments. But it’s a flexible plan, so if your situation changes we can talk to your creditors about accepting higher or lower payments. As your situation changes, you can always look at offering a Full and Final settlement of the debt.

If I join your management plan, will it damage my credit history/ credit rating?
A. If your creditors agree to accept reduced payments and freeze / reduce interest charges, there is always a chance they will issue a default notice, as you've not maintained your original agreement with them. However, if you are currently in financial difficulties, this may already have happened – and it's generally better to accept a default notice than to let debts continue growing until creditors start considering more serious action such as applying for County Court Judgment (CCJ) or issuing final demands.


Will I have to pay if I withdraw from the plan?
A. No. Please inform us in writing four weeks before you leave, giving us time to tell your creditors they should deal with you from now on. But we don't charge you for leaving early – and if you cancel within the initial cooling-off period, we'll refund any payments made to us in there entirety.

Debt Management Companies

There are so many debt management companies around now, all established to answer the increased demand for debt advice and solutions. But with so much choice, how do you know TDC is the right debt management company to help you to get out of debt?

There are certain things you should be looking out for:-

• Firstly, we are an established debt management company with plenty of experience. Look for those with testimonials from real people they have helped. Look how long they’ve been doing it for – those who have years of experience. TDC are probably better placed to help you than brand new debt management companies who have not built up their point of contact network.

• Advice should be free. That’s why here at the Debt Community we provide a free debt advice helpline. Debt management companies should be offering accurate advice on the range of solutions available to help you. They shouldn’t be charging for this advice and they certainly shouldn’t be trying to use it to tie you in to taking a product with you. Taking advice from one debt management company does not mean you cannot then take advice or even use the services of another. We have a large number of clients who have joined us from other companies.

• Who’s in charge? You should always check who runs various debt management companies and take a look at what qualifies them to offer you debt advice! TDC is run by two directors who have been in the debt industry over 17 years combined.

• Look into the range of products and solutions they can offer. Debt management companies who have the ability to offer a full range of solutions are often a better move than those who perhaps only offer one or two. This means they can cater for a wider range of circumstances and offer you more choices. Here at TDC we look at your financial position then look at all options. There could be a number of solutions available and therefore it is important that you know the advantages and disadvantages of them all. We call this TCF - Treating Customers Fairly.

For free impartial advice on all your options call TDC now on 0800 612 6076