The DMP process explained
A Debt Management Plan is usually set up by a third party provider, such as PayPlan.
Your DMP provider will work with you to understand your income and outgoings, and come up with an affordable payment amount.
Once a realistic, affordable monthly payment has been set and you are happy to go ahead with the DMP, your provider will contact your creditors to explain your situation, and tell them how much you’ll be paying them through the DMP.
With most DMP providers, you pay the agreed repayment amount to the provider, who will share out your payments between your creditors based on your level of debt with each. This is the case with DMPs with PayPlan.
Some providers may charge a set-up fee, a monthly fee or both. Some, like PayPlan, offer the whole service free of charge.
Because your repayments are based on your specific financial circumstances, your DMP provider will continue to monitor your financial situation to ensure any changes are factored into your payment. Should your circumstances change while you are in a Debt Management Plan, it’s important to tell your provider straight away, so they can offer advice.
For expert advice on which debt solution is right for you, call PayPlan FREE on 0800 280 2816. We are open from 8am to 8pm Monday to Friday, and 9am to 3pm on Saturday. Alternatively, complete our enquiry form and we will be in touch as soon as possible.