Is a token payment plan suitable for me?
A TPP is a temporary plan. We can only set one up if your income is only just covering the payments towards your household bills (so you've got nothing left over at the end of each month) and your situation is going to improve within the next 12 months.
We may also recommend a TPP in exceptional circumstances, even when your situation isn’t likely to improve.
Your situation could be improving because:
- You have a payment that is due to finish, which will free up money in your budget. This could be paying off arrears on your rent or mortgage, or finishing a hire purchase agreement
- Your situation will change, for example if you’re looking for work or you’ll return to work after maternity leave
How does a TPP help me?
A TPP takes the stress out of dealing with your creditors and gives you breathing space while you get back on your feet. Once your situation has improved we’ll review your budget and talk to you about the options available to help you deal with your debts.
What should I do if I've fallen behind with my household bills?
If you've fallen behind with your priority household bills (like gas, electricity or mortgage) and built up arrears then we can add these onto your TPP so that you can pay them something towards your arrears in your monthly TPP payment.
This will help reduce the pressure you're under as you'll just make one payment to us and we'll help you deal with your priority household bills as well as your unsecured debts.
When your situation improves you can increase the payment you're making to get your household bills up to date as quickly as possible.
Why can’t you offer everyone a TPP?
A TPP isn’t a long term debt solution. If you can only afford £1 a month to your unsecured debts and nothing in your situation is due to change we will advise you on more suitable debt solutions.