Check Out Our Debt Management Plan FAQs
Debt Management Plan FAQs
What is a Debt Management Plan?
A Debt Management Plan is a flexible payment arrangement which provides you with a viable alternative to Bankruptcy and avoids the serious consequences and limitations it carries.
It allows you to make one simple payment over a fixed term towards all of the existing debts you owe. The regular payment is set at an amount which fits within your budget.
During the DMP process, we negotiate with creditors on your behalf and on your terms – not theirs, so you can reach a fair outcome between all parties.
All calls and harassment from creditors will cease once they recognise we are working with you to find a positive solution to your financial situation.
Our Debt Management Plan is offered Australia-wide. No matter where you are, if you’re struggling we can help reduce your debts and get your finances back on track.
How does it work?
After engaging Revive, one of our experienced Customer Success Managers will be assigned to collect information for your application. The information collected will help your Customer Success Manager understand your financial circumstances and create a tailored solution for your individual situation.
After completion of your application, we will submit this to your creditors for approval. Once your creditors know you have entered into a DMP, all harassing phone calls will stop (This is a requirement by law). At this stage, you will be required to start making regular payments towards your DMP.
Upon acceptance of the DMP by your creditors, you will be on your way to taking back control of your financial future. Should your DMP not be accepted, we will look for alternatives or refund any payments you have already made towards your DMP.
In order to qualify for a DMP, all you have to do is be experiencing financial hardship. In other words, you just need to be struggling to meet your creditor repayments as they fall due. There are no restrictions on the amount of debt you owe, value in assets you have or income you earn. These factors only play a role in the type of DMP recommended for your situation as a DMP can be tailored for anyone struggling with debt.
How long will my Debt Management Plan take to complete?
This depends on your level of debt, your budget and your Creditors. Our DMP terms are 3 to 5 years in most cases.
Negotiations with each Creditor can vary depending on the amount of debt, type of product and previous account behaviour. This may effect the length of the DMP we can achieve for you.
Can I pay more if my situation improves or pay out my Creditors early?
Yes, if your financial circumstances improve, you are able to increase your DMP repayments at any time.
We can then use these extra funds to either pay your Creditors more each month, or preferably build these funds up in a Trust Account and then offer your Creditors a lump sum to settle the account for a reduced amount. You will not be penalised for paying out your accounts earlier.
Will a Debt Management Plan effect my credit file?
Yes, in most cases a DMP will be noted on your credit file.
However, depending on the type of DMP the impact on your ability to apply for loan or effect your financial circumstances may not change.
In addition, we have access to a range of financial services and products which allows us to offer lending alternatives that other lenders can’t. Even those who have effected credit files.
Will a Debt Management Plan affect my employment?
However, by entering into a Debt Agreement it may be difficult for you to hold a particular licence, which may prevent you from being a member of that professional body or trade organisation. For instance, those who have entered into a Debt Agreement cannot hold a Real Estate license and, therefore, can’t operate as a real estate agent while they are in a Debt Agreement.
Can I put my payments on hold, if my circumstances change?
Yes, in some cases.
If you experience temporary changes to your circumstances, we work with you and your creditors to reduce or pause your payments. If your situation improves and you are fortunate to secure further employment we will implement a catch up plan in order to catch up any arrears.
If your circumstances permanently change and are struggling to make your payments, we can reduce or remove your payments and review your situation on a weekly/fortnightly basis. If your situation does not improve over time in a matter of months, we may review your options.
What type of Debt can I include in my Debt Management Plan?
You can include unsecured debts such as Credit Cards, Personal Loans, Pay Day Loans, ATO debts and some Centrelink Debts, outstanding Utility & Phone Bills.
You cannot include fines, penalties, HECS debts and some Centrelink Debts.
Can I include Secured Creditors in my Debt Management Plan?
No. You cannot include secured creditors, such as home loans, some car loans and other loans where the loan has been secured by some form of property.
What happens after your Debt Management Plan is finished?
Once your DMP is paid, you will no longer have any obiligation towards those creditors concerning those Debts and you will be able to take back control of your financial future.
By sticking to your DMP, it will allow you the opportunity to slowly rebuild your credit score and truly put your financial issues behind you. To rebuild your credit rating and gain trust with lenders, you can:
- Pay all your bills on time
- Pay more than the minimum
- Keep up to date with payments
- Avoid making excess credit enquiries
- Avoid credit cards at all costs and instead develop a healthy savings account