How do I make a Payment Arrangement?

Table of Contents

When do you need a payment arrangement?

Why is a payment arrangement important?

What happens if I can not make a payment arrangement?

What is a payment arrangement?

A payment arrangement is an agreement made between the client and the debt counsellor to make up for missed payments or accounts in arrears. It involves an increase in the client’s monthly instalment for 1, 3 or 6 months, depending on the requirements of that specific credit provider.

When do you need a payment arrangement?

You need a payment arrangement when a client pays less than the required/expected amount or when a payment is missed, leading to accounts going into arrears.
In addition, when a client is transferred to Vantage Debt Management from another debt counsellor and has arrears on accounts from their previous debt counsellor.

Why is a payment arrangement important?

Payment arrangements can help avoid accounts being terminated from the debt counselling process as there will be a plan in place to bring the account up to date within a reasonable time frame. Every credit provider has different rules regarding how many months to give a client to catch up on a missed payment. Your Vantage consultant will make you aware of the options available.

The longer accounts are in arrears, the more likely they are to get terminated from the process of debt counselling.

What happens if I cannot increase my monthly installment to make the payment arrangement?

As debt counsellors, we do not have the mandate or authority to grant clients a payment break if they can not catch up on a missed payment. It is solely at the discretion of your credit providers. For a credit provider to consider giving a payment break, the client would need to provide reason(s) and any supporting documents in the form of proof of other expenses the client had to pay. Please read the Change of Circumstance article for more information.