FAQ

How long before I can obtain credit again?

This will depend to an extent on your repayment arrangement and the length of time that it is in operation. The time span for a Debt Management Plan can vary according to the amount of debt and the amount that you can afford each month in repayment of your debt.

However, as a Debt Management Plan is based on the amount that you can afford to pay each month, it is inadvisable to take on extra credit whilst you are on a Debt Management Plan. You would be unable to pay for the extra credit and this would leave you either in arrears with that particular credit item or unable to pay for the monthly amount due under your Debt Management Plan. As your ability to pay regularly is a term of the plan, this would be likely to void the DMP causing your creditors to take appropriate action to collect their debts. This is the situation that you want to avoid.

With other repayment schemes the repayment period is fixed. For example, with a Debt Relief Order your debts will be wiped after a year. With an IVA your debts will be cleared once you reach the end of the repayment period which will be fixed for anything up to five years. Some people find it quicker to pay off their debts with an IVA rather than a DMP, because of the high proportion of debts that are written off. However, this is a more formal arrangement and has more restrictions.

Give us 5 minutes and we'll give you:

  • Advice on all debt solutions that you may apply for
  • If your debt can be written off
  • Explain any interest or charges that can be frozen
  • Honest, no obligation advice

Some solutions, such as a Debt Management Plan or an Individual Voluntary Arrangement involve costs when the plan is set up.  These costs are there to cover the expenses and work undertaken on your behalf.  You will always be told clearly about any costs upfront.  Other solutions, such as a Bankruptcy incur costs which are payable to the Court; Debt Relief Orders incur costs which are payable to the Insolvency service.

Debt Direct is a trading name of Tatstar Limited. Tatstar holds a consumer credit license to offer debt counseling. Your enquiry will be passed to a selected third party who will contact you to discuss the most appropriate solution for your circumstances.