The Facts: DMPs
Written by PayPlan on 8 February 2018
What is a DMP?A DMP, Debt Management Plan, is an informal arrangement between you and your creditors, managed free by PayPlan.
To pay your debts back, you pay one single monthly payment, as part of your plan, which goes toward repaying your unsecured debts. There is no guarantee that interest and/or changes will be frozen. If they aren’t frozen, it will result in paying back more over a longer period of time.
How much does it cost to set up a DMP?Nothing, if you choose PayPlan, it’s completely free.
There are other debt management companies that charge by either requiring a set-up fee, or a monthly management fee.
PayPlan can offer DMPs to you for free as many creditors recognise our success at arranging debt repayment solutions that our clients can afford to repay, and agree to a small donation to us for providing this service to you.
This is what allows us to offer completely free Debt Management Plans. So whatever you can afford to pay each month goes directly to your creditors to reduce your level of debt even quicker.
Who informs my creditors about the DMP?One of the benefits using PayPlan for a DMP is that we will contact your creditors, explain your situation, show them your income and expenditure and make an offer of payment to them, on your behalf.
Pros and Cons of DMPs
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Other useful facts:
- Any change in circumstances may alter the length of your plan
- Early settlement is available if you wish to pay a lump sum off your debts or even make a full and final offer if, for example, you receive a windfall
- A DMP in itself will not show on your credit file, however, if you have recently been experiencing financial difficulty, such as missed repayments, then your credit rating is likely to have been affected by this already.
For immediate and free debt advice please call PayPlan on 0800 716 239 or use our Debt Help Form to submit your debt problem online.
Filed under Debt Facts