Debt Management Plan Fees

The fees that we charge for setting up and maintaining your Debt Management Plan are deducted from the regular payments you make towards your Plan each month. These fees are called an Arrangement Fee and a Monthly Management Fee.

Arrangement Fee – (one-off payment).

As the setup and initial period of your Debt Management Plan are the busiest, we charge an Arrangement Fee of £399 to cover this initial cost. This is a one-off payment, and it includes:

• Going through your Income and Expenditure (I&E) and calculating reduced repayment proposals based on what is realistically affordable for you.
• Reviewing your draft Payment Plan.
• Speaking to your creditors and negotiating monthly debt payments.
• Liaising with and providing information to your creditors on your behalf.
• Creating a personal account for you to access our online Portal, where you can see any updates to your account and send us messages at any time.

Our Arrangement Fee will be deducted from your agreed monthly payment (in addition to our Monthly Management Fee) until it is repaid or for a maximum of 18 months.

We will always cap our combined Arrangement Fee and Monthly Management Fee charges so that the majority of every monthly payment goes towards the repayment of your debts.

Monthly Management Fee.

Our Monthly Management Fee for new customers will be £46 or 49% of your monthly payment (whichever is lowest). This will be charged from your first payment up until your Plan is completed or cancelled. Monthly Management Fees for existing customers may differ; whenever we change our fee structures, we will always let you know our intention.

This fee represents the hard work that goes on behind the scenes to manage your Plan and keep it running, including:

• Distributing your payments across your creditors.
• Communicating and negotiating with your creditors on your behalf.
• Maintaining arrangements which could freeze interest and charges.
• Correspondence and general management of your Plan between you and your creditors, including responding to letters and phone calls from creditors on your behalf.
• Help and support from our expert Advisors.
• 24-hour access to our online Portal, where you can see any updates to your account and send us messages at any time.
• Conducting an annual review of your financial circumstances at least every 12 months (or more often, if necessary) to ensure you remain on a solution that’s right for you.

Example of our Fees.

Mr Example owes £10,000 to 9 creditors. Having carried out an assessment of their income and expenditure, we have agreed that they can afford to make a monthly payment of £275. This is their disposable income. 

For the first four monthly payments of their Debt Management Plan, Mr Example will pay £275 per month. Of this payment, MoneyPlus Advice will:

• Distribute £140.25 to Mr Example’s creditors
• Deduct a Monthly Management Fee of £46
• Deduct an Arrangement Fee instalment of £88.75

On the fifth monthly payment, Mr Example will continue to pay £275. MoneyPlus advice will:

• Distribute £185 to Mr Example’s creditors
• Deduct a Monthly Management Fee of £46
• Deduct the final instalment of the Arrangement Fee of £44

From the sixth monthly payment onwards, Mr Example will continue to pay £275. MoneyPlus Advice will:

• Distribute £229 to Mr Example’s creditors
• Deduct a Monthly Management Fee of £46

Following this format, it will take Mr Example 46 months to complete their Debt Management Plan and become debt free; throughout this time, Mr Example will have paid £2,515 in fees to us.

This is dependent on: 

• Mr Example’s disposable income and circumstances remain the same throughout the duration of their Plan
• Their debt level doesn’t increase
• All of their creditors agree not to charge any further interest
• Mr Example doesn’t miss any payments