How do I set up a EuroDebt DMP?

The long-term goal of a EuroDebt Debt Management Plan is to help you become debt free or to resume contractual payments with your creditors. To achieve this we work out with you all your income and all your outgoings so that we can calculate what you can reasonably afford to pay to your creditors to pay off your debts. This is done at the Home Visit.

The Home Visit - Client Financial Planner

During the Home Visit, which normally takes around 1½ to 2 hours, the EuroDebt Advisor will complete a Client Financial Planner with you that accurately reflects your income and expenditure. This includes assessing any debt or arrears with your priority creditors like rent, mortgage, utility bills and council tax.

You will be asked to provide proof of income and evidence of expenditure items listed, including bank statements and creditor statements.

The EuroDebt Regional Advisor will also try to identify whether there is additional income that you or your family are entitled to that isn't currently being claimed. They will also look at cost saving opportunities, including whether you have previously switched energy providers.

Your Single Payment Plan

Our DMP is called a Single Payment Plan (SPP). As the name suggests, the Single Payment Plan is one single affordable monthly payment which you make to EuroDebt. Your payment is held in a Client Account and cannot be used for other business purposes by EuroDebt.

We calculate how much the SPP should be after the Home Visit and after we have received up-to-date balances from your creditors. We calculate the SPP by establishing what you can really afford to pay. The amount you pay is then allocated to each of your unsecured creditors - the amount each creditor receives is based upon the total amount owed to each of them - this is called a "pro rata" payment with a minimum payment of £2 to each creditor per month. In addition, your SPP payment includes our monthly management fee.

We make the payments to your creditors on your behalf on an agreed date after receiving your SPP payment. Your SPP payment also includes our monthly management fee.

Dealing with court actions

Nearly one in four of our clients have county court or baliff actions against them. We have an expert legal support team to deal with these for our clients. At your Home Visit, our Advisor will identify any such actions that might be against you so that we can prioritise them for urgent action by our legal support team once you instruct us to act on your behalf. Whilst our legal support team cannot represent you in court, we can approach the court on your behalf to try to get your payments reduced (e.g. if you have an existing court order). We can also seek to persuade your creditors to drop court action where this may be pending.

Setting up your Debt Management Agreement

If you would like us to help you manage your debts, the Advisor will complete a Debt Management Agreement (DMA) with you and explain the implications of the agreement at each stage.

You will also be asked to complete several other forms enabling us to act on your behalf. These include:

• Client Authority Forms to give permission for EuroDebt to contact your creditors on your behalf.
• A Visit Checklist to ensure that all the points have been properly covered by the Advisor during the Home Visit.

The Advisor will also explain EuroDebt's Client Charter and complaints handling procedures.

If this sounds relevant to your circumstances then contact EuroDebt today by freephone 0800 2 98 97 98 or APPLY NOW. There is no obligation on your part.

Important points to remember:

• Whilst lenders are not obliged to freeze interest and charges, in 90% of the current cases we have referred to them they have done so*. Where a lender does not freeze interest and charges the amount you owe and the period over which you repay that credit account may increase, though we will continue to request interest and charges be frozen once several payments have been made to your DMP.
• Whilst entering into a DMP can adversely affect your credit rating it is our experience that those who approach us already have an impaired credit record. By entering into a DMP you will be showing your creditors that you are taking a responsible attitude to resolving your financial problems and this could help you in the future.

* Figure accurate at the start of January 2010.

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