Debt Management Plans (DMPs)
What is a Debt Management Plan?
Reduced monthly payments to suit you
A Debt Management Plan (DMP) is an informal agreement between you and your creditors, where you arrange to pay off your debts through lower monthly payments than you are currently responsible for. Your creditors may agree to freeze interest and charges, which gives you the reassurance that your debts are not continuing to grow. A DMP is not a legally binding debt solution and won’t appear on any public registers, so nobody needs to know about your DMP unless you tell them.
It’s possible for you to arrange your own repayment arrangement with creditors, or you can use a company like PayPlan to set . Not only does this reduce the legwork for you, but unlike many companies, PayPlan offer completely free debt management plans, as we are funded by donations from the credit industry.
To speak to our friendly, knowledgeable experts about our online debt management plans and to get impartial advice on which debt solution is right for you, call FREE on 0808 280 2816.
We are available from 8am to 8pm Monday to Friday, and 9am to 3pm on Saturday. Alternatively, complete an enquiry form and one of our team will be in touch as soon as possible.
How is a DMP different from…
An IVA differs from a DMP in a variety of ways – here’s the main ones.
|Individual Voluntary Arrangement (IVA)||Debt Management Plan (DMP)|
|IVAs normally last for five years.||DMPs will continue until the debt is paid back in full including repayment of interest and charges.|
|A large proportion of debt is written off at the end of the IVA.||In a DMP all debt is repaid. There is no guarantee that interest and charges will be frozen by creditors.|
|Once the IVA has been approved, all unsecured creditors bound by the IVA are unable to take further legal action.||As a DMP is an informal debt plan so creditors can pursue further legal action.|
|An IVA is legally binding so creditors cannot make any changes to your agreement once it has been approved. They can ask for modifications to your proposal but once accepted, the agreement is binding.||A DMP is informal and creditors can dictate changes throughout the course of a plan.|
|With the exception of statements and legally obligated letters (changes in contact information or another party may deal with the debt payment) contact with your creditors will stop during your IVA. You should allow approximately 3 months after the approval of your IVA to allow creditor administration departments to update their system details.||Creditors can at any point contact you throughout a DMP. They can also take legal action against you.|
|Your IVA will stay on your credit file for six years from the date it was approved or until it is finished should it go on for longer than six years.||In a DMP you may face difficulty with your credit file for the duration of the plan. A default notice can be issued at any point during your DMP and will stay on your file for 6 years from the date the last default is issued.|
Is a debt management plan right for me?
A debt management plan is an informal agreement between you and your creditors whereby you agree to repay your debt in reduced payments that are more affordable for you.
It could be the right solution for you if you have more than £4,500 in unsecured debts and if you are struggling to make the repayments. All debt will be repaid and there is no obligation to release equitable interest or other assets to your creditors.
It might not be the right solution for you if you have a higher amount of debt as depending on how much you can afford each month, it could take you a lot longer to repay back your debts. When you call PayPlan we will advise you of all the available options so you can see whether there is an alternative option that will get you out of debt quicker.
If you are unsure of what is the best option for you, contact PayPlan to discuss your options with our friendly team.
Why choose a PayPlan DMP?
PayPlan don’t charge their customers anything for their DMP services because we believe every penny you pay should go towards your debts. With lots of fee charging companies closing down, we have created an online DMP calculator so you can see how much money you could save if you opted for a free debt management plan.
Simply move the sliders to show the percentage you pay to your current debt management company and to show how much you currently pay into your DMP. Our debt management plan calculator will use these figures to work out how much more money you could be repaying towards your debts.
What to expect from a FREE debt management plan with PayPlan?
Single, affordable, regular payments
You make just one payment every month, at the most convenient time for you – for many people this is just after they’ve been paid. We then use this payment to pay all of your creditors. Read more below if you need help with debt management plans…Reduced monthly payments to suit you A Debt Management Plan (DMP) is an informal agreement between you and your creditors, where you arrange to pay off your debts through lower monthly payments than you are currently responsible for. Your creditors may agree to freeze interest and charges, which gives you the reassurance that your debts are not continuing to grow. A DMP is not a legally binding debt solution and won’t appear on any public registers, so nobody needs to know about your DMP unless you tell them. It’s possible for you to arrange your own repayment arrangement with creditors, or you can use a company like PayPlan to set a DMP up on your behalf .
Not only does this reduce the legwork for you, but unlike many companies, PayPlan offer completely free debt management plans, as we are funded by donations from the credit industry. To speak to our friendly, knowledgeable experts about our online debt management plans and to get impartial advice on which debt solution is right for you, call FREE on 0800 280 2816. We are available from 8am to 8pm Monday to Friday, and 9am to 3pm on Saturday. Alternatively, you can get debt help online by using our online debt solution tool, PlanFinder.
Convenient online tracking
You can check the progress of your plan at any time on PayPlanPlus.
This free online service enables you to keep tabs on all the payments you make, the amount that has been paid to all of your creditors and allows you to see an estimated time scale of when your debt will be repaid.
Freezing of interests and charges
While PayPlan cannot guarantee to get interest and charges frozen in all cases, we will talk to your creditors and ask them to freeze interest and charges while you make your repayments. We have an excellent reputation within the credit industry and use this to help you.
Friendly and experienced staff
You’ll find our trained advisers understanding of your situation and ALWAYS ON HAND to assist you with any questions you have about your debt management plan.
How about the ‘small print’?
We always ensure our clients are aware of, and understand, all aspects of the debt solutions we advise on. So before committing to a Debt Management Plan, you should be aware that failure to keep to your agreed repayment terms will result in your plan being cancelled. If you fail to meet your payments your creditors might also look to take legal action against you to ensure they get some form of repayment from you.
By entering into a DMP your regular repayments may be lower, however your repayment period could be longer and the total amount payable higher. This is why when you contact us we will always look at a range of solutions – we want you to get out of debt as soon as you can so you can start enjoying your life again.
Like the majority of debt solutions, entering into a Debt Management Plan will affect your credit rating. A DMP is not a formal agreement so creditors do not have to accept the proposal and they can continue to register defaults until you have repaid all your debt. With some debt solutions, your credit rating will only be affected for a period of time. However with a DMP your credit rating could be affected for 6 years from the date of the last Default Notice issued against you, which your creditors can issue at any point during the plan.
More About DMPs
- Debt Arrangement Scheme
- Example DMPs
- Debt management plan case studies
- Debts That Cannot Be Included in DMPs
- How is your DMP payment worked out?
- DMP FAQs
- How Long Does a DMP Stay on Your Credit File?
- How does a DMP impact your credit rating?
- What to do if your existing DMP company is closing
- Can I cancel my DMP?
- Budgeting with a DMP
PayPlan Debt Management Plan reviews
Being able to make affordable payments have taken away a lot of the stress of trying to juggle money every month
Helped me in more ways
Payplan have helped me in more ways than just a debt. It has changed the way we live! not just budgets but solutions! learning to cook/bake to save pennies. days out on a budget and many more ways. the debt has not gone away but its improving so are our lives. Just need to keep going at it .
After first contacting National Debtline, my case was taken up by PayPlan. At each stage I was treated sympathetically with each solution explained clearly. With my DMP, PayPlan have helped set up a budget to repay my creditors. They have taken away the worry of contacting each creditor in turn. PayPlan send regular e-mails with different money saving tips etc. It will take time but I am determined to see this through with the help of PayPlan.
Take advantage of our free debt help and advice – Contact us today
At PayPlan, we know that debt is an accepted PART OF LIFE for many people. But we don’t believe that this has to be the case.
We advise on a wide range of practical solutions to help people deal with their debt and get on with LIVING THEIR LIFE rather than just accepting it and struggling to survive. To start putting your debt worries aside, call us free on 0800 280 2816 and have a chat with one of our fully trained advisers.
You can be confident of receiving sensible, sound advice without obligation. When you call we will talk you through a full review of your current circumstances and explain the choices that are available to you – we will also recommend the most suitable solution and assist you with your application.
If you already think that a DMP is the right choice for you, then simply call our advisers today on 0800 280 2816 and take the first step towards regaining control of your life and your debt. And please don’t be put off if our advisers are busy helping our other clients, just fill in our online Debt Help form and we will call you back.