“Lower repayment rates are subject to creditor agreement. This means that the creditors you owe money to have the right to decide whether they accept your offer of lower repayment rates or not.
In some cases creditors can refuse to accept these rates if they believe you can meet the original repayment rate.
If you are having problems meeting repayments, it is advisable that you speak to a professional debt management company who has experience in dealing with creditors as they may be able to negotiate a more affordable repayment rate on your behalf.
To support your case, a debt management company will create an expenditure form detailing your total income and outgoings. This information will help a debt management company to calculate a lower repayment rate from your existing disposable income.
If creditors accept this offer, then you must remember that they do not have to freeze interest rates or charges – which could increase the total amount of debt owed and extend the repayment period. However this is only applicable to Debt Management Plans – not Individual Voluntary Arrangements where these types of additional fees are frozen.
A professional debt management company will be able to provide more information on the solutions available to you and the terms and conditions included in such services.”