Your Debt Management Plan

You have taken a major step to get back in control of your finances. Your Regional Advisor will have left you with a folder that is designed to hold all of your paper work from the time of your appointment with your Regional Advisor to the end of your Debt Management Plan (DMP) with EuroDebt. In addition to the important documents from your Advisor's meeting (e.g. your copy of the Debt Management Agreement), you will continue to receive regular correspondence from EuroDebt and your creditors. It is important that these are filed safely and are easily accessible.

Important Next Steps

You will receive a welcome call and welcome letter from your Personal Case Manager as soon as your Debt Management Agreement (DMA) has been accepted. As a client, you can always contact us on 0845 36 26 131 and quote your DMA-id.

Within a few days of your appointment you will receive formal confirmation of the acceptance of your DMP and EuroDebt will send you a copy of your Statement of Affairs to review, sign and return to us in the postage paid envelope provided. Please take the time to review this and promptly return it to us.

If you had any legal action pending then this will be actioned as a matter of priority. If there is any court paperwork required that was not completed at the appointment then EuroDebt's legal support team will contact you.

If you have elected to pay your Instruction Fee or Single Payment Plan (SPP) using an Allpay payment card then you will receive these in the post several days after your initial appointment. Please read the supporting leaflet on where and how you can use the payment card. The envelope from Allpay is clearly marked, so look out for it in the post. You may also receive a payment card if you fall behind with any of your EuroDebt fee payments. Our aim is to offer total flexibility.

If you need to set-up a Basic Bank Account to safeguard your wages or salary then keep all the relevant paperwork in your folder and notify your EuroDebt Case Manager at the earliest opportunity with your new bank details.

Alternatively, EuroDebt offers its clients the opportunity to apply for a Prepaid Current Account that includes a prepaid MasterCard® that can be used anywhere displaying the MasterCard® brand. This is not a credit card.

The card allows you to take advantage of many cheaper purchasing channels (e.g. on the Internet) that would not normally be available to someone in serious debt.

Again, the intention is to optimise your income in your day-to-day activities and reduce the stigma of being in debt. Your salary or wages can also be paid into the current card and you would have all the normal facilities of current account. More information can be found at www.bankswitching.co.uk.

Whilst all of this is going on, we will be contacting your unsecured creditors and advising them that EuroDebt is acting on your behalf. We will request up-to-date account balances and negotiate with them to suspend further interest charges, so that your debts don't increase further. Unfortunately, as company policies vary, we cannot guarantee that every creditor will freeze interest or agree to reduced payments. We also request that the status on each account is marked to show that you are on a formal DMP with EuroDebt.

Subject to you keeping to the Instruction Fee payment scheme in your Debt Management Agreement, we will commence making payments to your creditors from the second month of your Debt Management Plan. This normally means that your creditors will receive token holding payments in month 2 and month 3, unless sufficient qualifying payments for your Instruction Fee have been cleared before this time. You will then commence your Single Payment Plan payments and EuroDebt will promptly disburse the negotiated payment to each of your creditors that you have asked us to act upon.

At this point your creditors will be notified of the payments they will receive from EuroDebt each month. We will continue to monitor which creditors have accepted our proposals. All creditors are legally obliged to accept payments from EuroDebt on your behalf, even if they don't accept the payment proposal.

When you commence your Single Payment Plan (SPP) we will send you an opening statement detailing the estimated duration of your DMP and the total fees payable to EuroDebt. EuroDebt do not charge monthly management fees after 96 payments and we have a total cap for our combined Instruction and Monthly Management Fees. Once the cap has been reached then all subsequent SPP monies paid to EuroDebt will be disbursed to your creditors without deduction.

A monthly management fee applies. It is important that you inform us if you can't make your monthly payment or wish to make a reduced payment because of your financial circumstances. It is critical that we have the time to speak to your creditors, especially where the have already agreed our repayment proposals.

Important points to remember:

• Whilst lenders are not obliged to freeze interest and charges, in 92.9% 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 March 2011.

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