Our Fee Structure
The fees that we charge will depend upon the type of debt remedy that we help you with.
For Debt Management Plans;
Initial set up fee:
This is the fee charged to set up your debt management plan. The fee is calculated depending on the work involved but is subject to a minimum of £240.00 and a maximum equivalent to 50% of your monthly disposable income multiplied by 6. Your set up fee will never exceed £1200.
First Years servicing fee:
This is the fee charged for the administration of your Debt Management Plan.
As we do not administrate payments on your behalf our service fee is designed to reflect the amount of work involved in managing your case.
In order to ensure that all clients are treated fairly, we use 2 calculations to determine your monthly service fees. Subject to the minimum service fee of £45.00 per month, the lower of the two calculations will be used to determine your service fees. This will ensure that you are not penalised for having a higher disposable income and will enable you to make increased payments to creditors.
If we base your service fees on your debt level;
- If you owe less than £20,000 your service fee will be £45.00 per month
- If you owe between £20,000 – £30,000 your service fee will be £51.66 per month
- If your debt total over £30,000 your monthly service fee will 2.5% of your total debt level divided by 12
If it works out better for you, we may calculate your service fee based on disposable income;
* Monthly servicing fees based on your disposable income will be calculated at 37.5% of the annual disposable income before payment of fees or payments to creditors divided by 12. This will ensure that when aggregated over the first year, you will not have paid a sum in excess of 50% of your total disposable income towards service fees during the first 6 months of your plan.
Future years servicing fees;
This is the ongoing fee charged for the administration of your Debt Management Plan.
Once your debt management plan has been up and running the likelihood is that there will be less work involved than during the first twelve months. Therefore, subject to the minimum service fee of £45.00 per month, after year one your service fee is calculated at £10.00 per month plus 50% of your service fee in the first year.
Example: If a client’s initial total debt level is £38,000, the service fee from year two onwards will be £49.58 per month.
Where we negotiate a reduced settlement with any of your creditors, our fee for doing so will be calculated at 10% of any savings made. We will always try and allow for this in the lump sum available.
Example: A client has a balance of £3000.00 outstanding and has a lump sum available of £1200.00. We would endeavour to negotiate a settlement of £1000.00, and if successful our fee for doing so would be 10% of the saving i.e. £2000.00 x 10% = £200.00.