DWP Debt Management

Personal DWP Debt Advice on 0800 074 6918

The DWP Debt Management is part of the Department of Work and Pensions. This organisation is run to recover money that has been overpaid because of mistake or fraud, or paid as a loan and needs repayment.

DWP Debt Management provides services such as:

• The recovery and management of loans and benefit repayments. The DWP Debt Management Customer Charter sets out the standards that can be expected and the responsibilities in return.
• Social security benefits recovery from compensation payments. The DWP Debt Management has a Compensation Recovery Unit with its own Customer Charter.
• National Health Service charges for treatment of injuries sustained in road traffic accidents.
• Maintenance payment collections that are not the responsibility of the Child Support Agency.
• A letter forwarding service for insurance companies and financial institutions.

DWP Debt Management also uses a number of selected private companies when trying to recover unpaid debt.

DWP Debt Management Case Study

Mr Michael Crowski from London contacted Money Advice Direct explaining he had been written to by a debt collection company on behalf of DWP Department for Work and Pensions. The debt management letter informed him he had an outstanding balance of £500 he needed debt collection help.

The DWP debt advice team at Money Advice Direct contacted the DWP Department for Work and Pensions and helped the client arrange a monthly payment plan.

Personal DWP Debt Management

Debt Management is an informal agreement, often arranged with the help of a third party to organise the repayment of unsecured debts. Debt Management will help to clear debts by organising reduced, manageable repayments over a fixed period of time, eventually becoming debt free.

If you have debt problems and you’re able to reach some, but not all of your monthly repayments, Debt Management may be of benefit to you. This is often a safe option due to the non-legal nature of a Debt Management agreement.

IVA to clear personal debt

An IVA (Individual Voluntary Agreement) is reached when a debtor (somebody owing money) formally agrees with their creditors (the people he/she owes money to) how repayments are going to be made, usually over a period of 5 years. As IVA’s are formal in nature, they must be arranged by a licensed insolvency practitioner.

Bankruptcy to clear personal debt

If you are unemployed or fail to qualify for an IVA or debt management plan, bankruptcy may be the best solution to your debt problems. It may help you to get debt free (subject to terms and conditions), but there are serious implications with declaring bankruptcy.

If your applications for loans or credit have been rejected, filing for bankruptcy can clear your debt. Bankruptcy is suitable for debts over £750, whereas an IVA will be more suited to debt of over £15,000.

These days it’s not difficult to run into debt problems. The UK is surrounded with growing unemployment, lack of debt solutions and the likelihood of increased interest rates in the near future.

Money Advice Direct is an established provider of confidential and non-judgemental debt advice in the UK on serious debt problems. Whatever solution we recommend, honest, best advice is available 24 hours a day, 365 days per year. If you are in debt call us without obligation today on 0800 074 6918 or apply for debt help online.

Listed below are some of the frequently asked questions on Debt Management Plans

• How do I know whether a Debt Management Plan is right for me?
• What are the advantages of a Debt Management Plan?
• What are the disadvantages of a Debt Management Plan?
• Is a Debt Management Plan a type of loan?
• How long will I have to pay a Debt Management Plan before I am debt free?
• How much does a Debt Management Plan cost?
• How much money will actually go to the companies I owe money to under a Debt Management Plan?
• How do I make the payments?
• If I have a change of circumstance can I stop the Debt Management Plan?
• Who tells the companies I owe money to that I am actually in a Debt Management Plan?
• Will the companies I owe money actually accept a a Debt Management Plan?
• How a will Debt Management Plan affect my credit status with Experian, Equifax and Callcredit, the three main credit reference agencies
• Will a Debt Management Plan stop all the companies that I owe money to constantly telephoning me and sending me letters?
• Will I receive a regular report to inform me that my debts are actually going down?
• After the Debt Management Plan is set will I receive be able to get any additional help and advice?
• After the Debt Management Plan is set up can I still use a credit card or apply for car finance if I budget for it?
• Once the Debt Management Plan has been set up does it mean that I will have to keep paying interest and bank charges?
• Can I include secured loans in a Debt Management Plan, such as car finance or mortgage?
• Can the companies that I owe money to threaten to take my house or flat once that I am in a Debt Management Plan?
• Can I include all my debts in  a Debt Management Plan?
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