Vincent Bond

I've only been with Vincent Bond a short time, but in that time I can only praise the fantastic work of Karrie. She is sympathetic without being condescending and is extremely punctual in getting back to me. She has always kept me informed of my case by either telephone, email or text, which is really handy. Every payment date I get an email to state that's funds have been received. I have no hesitation in recommending this company based on Karries dedication and hardwork.

What is a DMP?

A DMP or 'Debt Management Plan' is an informal agreement with your creditors to make reduced affordable monthly payments.
It is based on a realistic budget that allows you to pay all your priority bills and normal living expenses and pay what is left to your creditors.
Though not obliged to and not guaranteed, most creditors will agree to reduce or freeze interest so that the money you pay reduces your debt more quickly.

Is it right for me?

A DMP may be the solution for you if:

You want to make regular reduced payments as your contractual payments are simply unaffordable and you are in danger of getting further and further into debt.
You need flexibility because the near future is uncertain. Your income, changes in family circumstances or perhaps health mean you need a plan that deals with your debts temporarily until things are more settled.
The other debt solutions are not suitable for you for some reason or you feel an obligation to pay the debt back in full rather than trying to have some written off.
You want or need to avoid the formal insolvency routes of an IVA or Bankruptcy which can affect some jobs and a family home as well as tying you in for several years.

Advantages
Disadvantages
Fees
Key Facts

One realistic affordable monthly payment.
You don't deal with your creditors that stress is taken away from you.
Interest and charges are often frozen though this is not guaranteed.
It is an informal agreement, so you can change it when you need to.
It is discreet; no one is made aware other than your creditors.
No need to borrow more money each month to meet basic living costs.
Your home will not be at risk provided you pay your mortgage payments

No debt is written off, so it can take longer to repay than originally intended.
It will affect your ability to obtain credit in the future, though this can improve once you have paid your debts in full.
Creditors are not under any legal obligation to suspend interest or late payment charges.
Secured debts (i.e. mortgages and car HP) and Crown Debts such as Council Tax cannot be included in a DMP.

You may be able to get help with an informal debt management programme for free. However, most companies who provide these services will make a charge. We work for you, not your creditors and will charge an ‘initial fee’ at the start of the DMP and a ‘monthly fee’ for each month you are in the plan.
The initial fee covers the production of a financial statement and proposals for your creditors along with the initial negotiation with creditors by phone, letter and email to set up your agreements for reduced payments. The monthly fee covers the ongoing communication with both creditors and yourselves, continuing active negotiation to reduce interest and charges wherever possible, distribution of your payments, creditor harassment complaints and 6 monthly reviews of your plan.
The 'initial fee' will be the first two payments you make. Note - token payments are made to your creditors from these payments so that good initial contact is made with them.
The monthly fee is 15% of your monthly payment with a minimum of £25 and a maximum of £100.

It is important that you are aware of the following when taking on any debt solution:

All possible solutions should be considered to ensure you make an informed choice.
Fees will be charged if a solution is taken with Vincent Bond. This will be explained clearly in your consultation and agreement documents.
Stopping payments to your creditors may place you into further arrears.
It is likely that your ability to get credit will be affected.
As per the Consumer Credit Act you have a 14 day cooling off period in which to cancel your plan.

We will advise you on all of the above and help you understand the pros and cons of the solutions you have open to you. Click here to see our Terms and Conditions

DMP Step by Step Guide

Step 1

One of our debt consultants will review your entire financial situation over the phone and help you work out the most effective solution to your problem. If you feel a DMP is the right choice, then we will generate a financial statement to establish what you have left per month to offer your creditors after all your priority bills and living expenses have been accounted for.

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Step 2

We will send you (by post or email) a pack including your Financial Statement, details of the service we will provide you and a list of instructions for you to complete if you wish to proceed. You will be assigned a dedicated admin support staff member who you will have a direct dial telephone number and email address for. They will give you a courtesy call to check you have received your pack and answer any questions you may have about what to do next.

Step 3

You would then stop paying all your unsecured creditors, but continue to pay all your priority bills including of course a mortgage if you have one and any secured debts. If you have direct debits with your creditors you should cancel these, although this will be harder if the debt is with your bank. We will advise you how to deal with this.

Step 4

Once we have received signed documents back from you with all the creditor details and have received your first payment we will contact each creditor with an offer of payment. It will also be requested that they freeze all interest and further charges on the debts, though the creditors do not have to do this by law. During the early part of the plan the creditors will respond to these offers and update the exact balances.

Step 5

You continue to pay this single payment to the debt management company until the debt is paid in full or until your situation changes. You may be contacted by the creditors directly, but you can refer them to the debt management company and should not be pressured into making additional payments outside the DMP. We will continue to negotiate regarding the freezing of interest and charges for as long as this may take.

Step 6

Flexibility – at anytime during your plan if you need to make any changes, we can do this for you, so if you feel your situation has improved, you can reassess you situation with one of our advisors and perhaps look at another solution, perhaps an IVA.

Settlements

If you think you may be able to get a lump sum together, however small you should contact us immediately. Once you have been in a DMP for a few months creditors are often open to settlement offers that allow you to write off some of your debt.

Case Study

DMP Case Study - Polly

Polly discusses her experiences of using Vincent Bond to help her resolve her debts following her husbands illness and a fall in the value of their house.

It is important that you are aware of the following when taking on any debt solution with Vincent Bond & Co: All possible solutions should be considered to ensure you make an informed choice. Fees will be charged if a solution is taken. Stopping payments to your creditors may place you into further arrears. It is likely that your ability to get credit will be affected. In compliance with the Consumer Credit Act you have a 14 day cooling off period in which to cancel your plan. Calls to our free phone number may be charged from mobiles and other networks.