How much does it cost to set up a Debt Management Plan (DMP)?
Nothing if you choose PayPlan, it’s completely free.
As you may know there are many debt management companies that charge by either requiring a start up fee or a monthly management fee, which can be anything from 15% – 17% of the monthly payment.
We are funded by the credit industry and we receive donations 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.
For example if you can afford to repay £250p/m all of that money will be distributed to your creditors pro rata, PayPlan takes no fees from your payment and the full £250 per month will go towards paying your creditors off.
Please think very carefully before signing up with a fee-charging company, because PayPlan can offer this service for free!
How long will my Debt Management Plan (DMP) last?
The length of your Debt Management Plan depends on your individual situation.
It depends on your level of debt and how much you can afford to repay each month.
If creditors do freeze interest and charges with creditors, the length of your Debt Management Plan can be dramatically reduced.
For example: If you owe £25,000 and you can afford to pay £250 per calendar month the DMP will last for just over 8 years (100 months). This applies only if the payments are maintained each month and the creditors freeze interest for the duration of the plan. (Don’t forget, your DMP can be completed sooner if your circumstances improve and your payments can be increased. Likewise if you circumstances worsen the duration of your DMP will be extended.)
Is a Debt Management Plan a loan?
No, a debt management plan is a way for you to repay your debts at an affordable rate.
A debt management company such as PayPlan doesn’t buy the debt from your original creditors, nor do they give you money to cover your existing debts.
A PayPlan DMP helps you to manage your debts by offering a reduced payment to each of your creditors, and we also request that they freeze interest and charges to help you get debt-free quicker.
Is a Debt Management Plan (DMP) suitable for me?
A Debt Management Plan (also known as a DMP) is a debt solution for anyone who has unsecured debts that they can’t afford to repay.
If you owe money to more than one creditor and you have a surplus income each month (that is, money left over after you have paid all of your living costs & household bills from your income) then a DMP could be a great debt solution for you.
With a DMP, you pay all of your unsecured debts back, but at a more affordable rate.
Will I still receive calls and letters during my DMP?
Your creditors are likely to contact you still initially, but this should die down after a few months once they’ve updated their systems. You can let your creditors know we’re dealing with your debts and provide them with your PayPlan ID for reference. You’ll still receive important information about your accounts that they’re legally obligated to send you.
What support do I get during my DMP?
You’ll have our support every step of the way. Once you start your DMP, you’ll be looked after by our support team, who can help with any queries you have. They’ll keep in touch throughout your plan and complete a review with you every year.
How do I apply for a DMP?
To get started, contact us via phone, WhatsApp, LiveChat, or our online form. Setting up a DMP is a straightforward process – one of our advisors will help you put together a budget to figure out how much you can realistically afford to pay towards your debts. It typically takes just a few days to set up a DMP.