Our fees

What iSmart Consumer Solutions charge for this service

We will take the first two monthly payments on your plan to cover the cost of setting up your plan and contacting your creditors. The fees will also involve establishing any outstanding amounts of debt, negotiation with your creditors on freezing the interest and also the negotiation with your creditors on setting up the plan. We will start paying your creditors from the third monthly payment received. Your creditors will receive a payment from us within five working days of receipt of your payment to us. From the third month we will charge a monthly fee equivalent to 15% (min £30) of your monthly payment. This covers the ongoing costs of administering your plan.

New customers are entitled to a 14 day cool off period where a full refund will be given if you decide a debt management plan is not the right path for you.

You are free to leave the plan at any time and there will be no charge to do so. We do ask, however, that you give us two weeks’ notice in writing. This will enable us to contact your creditors to ensure smooth return of your financial affairs back to you.

Credit Report

Although your credit rating may have already been affected by not being able to keep up with your repayments, our first two fees may cause arrears with your creditors whilst negotiations are underway.
You should only enter a debt management plan if you are able to meet your commitments.

Your credit rating may be affected for six years after completion of the plan. 

Below is an example of how the plan works

Danny is a middle aged man with a family to support. He is the only member of the house hold with an income and due to the credit crunch; he like many others is struggling to make ends meet. Caught in a situation where he is using credit to pay off other credit he finds himself in a vicious circle.

Example

Danny owes a total amount of £12 000 to two creditors:
NatWest loan: £6000
NatWest credit card: £6000
Barclay’s loan: £3000

Disposable income after daily expenditure: £200 per month

Amount of months the debtsmart debt management plan will last: 72
Below is how the £200 will be split between the creditors:
Natwest (Loan) would receive £85 pm
Barclays would receive £42.50 pm
Natwest (Credit Card) would receive £42.50
iSmart administration fee would receive £30

You will be on the plan for 6 years and £170 will be paid towards creditors
The set up fee for the debt smart debt management plan is two months so Danny would pay £400