Can I cancel my debt management plan?

It's important that you’re comfortable with your chosen solution. If you don’t want to go ahead with a DMP or want to cancel your it, that’s okay.

We’re here to help, so if you want to consider another approach to tackling your debts, get in touch. We’ll support you and make sure you’ve got the information you need and answer any questions you have so that you can make an informed decision about your future.

We won’t charge you a fee for cancelling your plan. If we’re holding any of your money in your accounts, we’ll refund this to you in full as soon as possible.

Ending your plan could lead to the companies you owe money to adding interest and charges to your accounts and taking legal action against you to recover what you owe. It’s very rare, but there is a possibility that they may choose to issue a Bankruptcy Order against you.

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Should I think twice about cancelling my DMP?

You don’t have to change your mind if your plan isn’t working for you, but make sure that you’re making the right decision.

Debt Management Plans are a great way of paying back your unsecured debt in full.

Everyone’s circumstances are different, and there isn’t a one-size-fits-all debt solution. So, if you’re thinking of cancelling your plan, consider the pros and cons that it offers you.

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What if I can no longer afford DMP payments?

We’re always here to help. If your situation has changed and you can’t afford your DMP payment, get in touch. We’re happy to review your budget with you at any time in your plan to make sure it’s affordable.

If you cancel your plan without another solution in place, remember that you’re still liable for the amount you owe. You’ll need to speak to the companies you owe money to and make payments directly to them.

Are there alternatives to cancelling?

Yes! No matter what the situation is, we’re here to support you and make sure you have all the information you need to decide which way is best for you to manage your debts.

Switch to a new provider

If you’re unhappy with the service from your DMP provider, the first thing you should do is contact them to let them know.

You’re not tied into a formal agreement with your DMP provider, so if you want to switch to a PayPlan DMP we’re happy to help!

We’ll set up and manage your DMP for free, so everything that you pay goes towards helping you become debt free faster! 

Learn more about switching your Debt Management Plan to a new provider.

Alternative debt solutions available

Cancelling your DMP should never be the first port of call if you’re struggling to make repayments. If you choose to stop your plan, the companies you owe money to may begin contacting you again, asking for direct payments. They may also start applying interest and charges.

If you feel a DMP is no longer right for you, there may be other solutions that better suit your circumstances. We offer advice on a range of debt solutions designed for different situations.

Learn more about the debt solutions available and how they compare.

Speak to us before making a decision

If you’re worried about your DMP or think your situation has changed, it’s important to get advice before taking action. We can review your current plan, talk through your options and help you decide the best way forward.

Get debt advice online or call 0800 316 1833 to speak to one of our advisers today.

Get advice about my situation

FAQs

Why do I have to change my bank account?
If you have a current account with a company you owe money to, you will be required to open a new bank account. This is not only the case with a DMP but you should change your bank account if you are going to make reduced payments to a company that you also bank with. Banks have the “Right to Offset” so any money in your current account could be used to pay another debt with the bank.
Will I have to live on a tight budget during my Debt Management Plan (DMP)?

To enter into and maintain a successful Debt Management Plan you will need to live within a budget, however this is discussed with you openly. PayPlan are required to submit your income and expenditure details to your creditors.

Remember that when we’re negotiating your DMP, it is in your interest if we can show your creditors you are prepared to stick to a realistic budget to help repay your debts.

Will I have to tell my partner about the Debt Management Plan (DMP)?

We offer an absolutely confidential service from start to finish, so PayPlan will never force you to tell your partner about your debt situation, although support is available if you wish to tell them.

A DMP doesn’t usually affect your partner’s credit rating, but if you have a financial association, such as shared debts or guarantor debts, then it could do.

Whenever we contact a client we take great care to avoid divulging the nature of our call to anyone but the client.

Which debts are included in a Debt Management Plan (DMP)?

DMP will only help you make reduced payments to your unsecured creditors, therefore the debts that can be included are:

  • Personal loans (loans taken to purchase cars are fine but Hire Purchase (HP) agreements cannot be included as they are secured against the item being purchased)
  • Credit cards
  • Store cards
  • Catalogues
  • Overdrafts

Secured debts can’t be included in DMPs because any payments on secured debts that aren’t met in full, can lead to the goods being repossessed. This website provides details on house repossession and car repossession, which are all consequences of not maintaining mortgage or hire purchase payments.

Is my home at risk if I enter into a Debt Management Plan (DMP)?
A Debt Management Plan is an informal arrangement which is not legally binding and although having a DMP could reduce the chance that the property would be at risk, there is a chance a creditor could take legal action such as securing a charging order on the property. This would secure the debt and a creditor could force the sale of the property at any point during a debt management.

Read more FAQs →

FAQs

Why do I have to change my bank account?
If you have a current account with a company you owe money to, you will be required to open a new bank account. This is not only the case with a DMP but you should change your bank account if you are going to make reduced payments to a company that you also bank with. Banks have the “Right to Offset” so any money in your current account could be used to pay another debt with the bank.
Will I have to live on a tight budget during my Debt Management Plan (DMP)?

To enter into and maintain a successful Debt Management Plan you will need to live within a budget, however this is discussed with you openly. PayPlan are required to submit your income and expenditure details to your creditors.

Remember that when we’re negotiating your DMP, it is in your interest if we can show your creditors you are prepared to stick to a realistic budget to help repay your debts.

Will I have to tell my partner about the Debt Management Plan (DMP)?

We offer an absolutely confidential service from start to finish, so PayPlan will never force you to tell your partner about your debt situation, although support is available if you wish to tell them.

A DMP doesn’t usually affect your partner’s credit rating, but if you have a financial association, such as shared debts or guarantor debts, then it could do.

Whenever we contact a client we take great care to avoid divulging the nature of our call to anyone but the client.

Which debts are included in a Debt Management Plan (DMP)?

DMP will only help you make reduced payments to your unsecured creditors, therefore the debts that can be included are:

  • Personal loans (loans taken to purchase cars are fine but Hire Purchase (HP) agreements cannot be included as they are secured against the item being purchased)
  • Credit cards
  • Store cards
  • Catalogues
  • Overdrafts

Secured debts can’t be included in DMPs because any payments on secured debts that aren’t met in full, can lead to the goods being repossessed. This website provides details on house repossession and car repossession, which are all consequences of not maintaining mortgage or hire purchase payments.

Is my home at risk if I enter into a Debt Management Plan (DMP)?
A Debt Management Plan is an informal arrangement which is not legally binding and although having a DMP could reduce the chance that the property would be at risk, there is a chance a creditor could take legal action such as securing a charging order on the property. This would secure the debt and a creditor could force the sale of the property at any point during a debt management.

Read more FAQs →

Let’s make your debt more affordable

You’re just two steps away from taking back control of your finances and freeing up more money for you and your family.

Getting advice has no impact on your credit score.

Excellent, professional, friendly and empathetic service. PayPlan have given us our lives back!
Sandra Daly

Sandra Daly

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Excellent, professional, friendly and empathetic service. PayPlan have given us our lives back!
Sandra Daly

Sandra Daly

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