How long will my DMP last?

A DMP will last until all of your debts have been paid off, and this will depend on your debt level when you start the DMP and how much you can afford to pay each month. If it would take a long time for you to pay off your debts this way, we may recommend an alternative debt solution such as an Individual Voluntary Arrangement (IVA). This lasts for 5/6 years and at the end of the term, your remaining unsecured debts will be paid off.

Why can my creditors still contact me in a DMP?

Because a DMP is an informal agreement to repay your debts between you and your creditors, you’re not legally protected from them contacting you. Having said this, there’s little reason for them to contact you once you’ve agreed to start paying back your debts. You may receive regular statements and default notices but generally speaking, the amount of contact you receive from your creditors over time is minimal.

Can I change the amount I’m paying into my DMP?

You’ll be able to change the amount you’re paying if you encounter a significant change in your circumstances, like starting a new job and being paid differently as a result, or having a change in the amount of benefit payments you receive. Changing the amount you’re paying works both ways; you can reduce your DMP payment if you begin receiving less income, but you’ll also be expected to increase it if you begin earning or receiving more money. We can discuss this with you in your annual review.

What happens if I can’t pay my DMP?

If you can’t make a payment towards your DMP for any reason, you’ll need to contact us as soon as possible so we can let your creditors know. We will look at your change in circumstances and work out what your options are – it may be that an alternative debt solution would suit your new circumstances better and we can help you with this.

A DMP with PayPlan

A Debt Management Plan (DMP) is a debt solution that allows you to make one affordable reduced monthly payment instead of paying your creditors individually.

What are the benefits of a DMP?

You’ll make one affordable monthly payment towards your debts, and we’ll split it fairly between your creditors.
A DMP with us is completely free – everything you pay will go towards paying off your debts.
We’ll deal with your creditors on your behalf, and they’re likely to agree to freeze interest and charges while you’re in a PayPlan DMP.
It’s not legally binding, so you have some flexibility to change your monthly payments if something affects your budget.
Taking steps to pay your debts back through a DMP could improve your credit rating in the long term.

What do I need to be aware of with a DMP?

You’ll still receive some contact from the creditors included in your plan. You may receive automated communications or things they must send you.
Whilst your creditors will likely agree to freeze interest and charges, we can’t guarantee they will.
Your creditors can still take court action against you while you’re in a DMP, but it’s unlikely this will happen. If it does, we’re here to support you through the process.
If your creditors issue default notices while in a DMP they will stay on your credit file for six years.

How can I apply for a DMP?

We’ll start by making sure that a DMP is the best debt solution for you based on your circumstances. You can use our free online debt solution tool or call us and speak to one of our specialists on 0800 316 1833, WhatsApp or Live Chat. Our debt advice is completely free.
Once we’ve agreed on an affordable monthly payment, we’ll begin setting up your DMP. After your plan’s been set up, we’ll distribute your new payments fairly between the companies you owe money to.
You can review your plan anytime; if something changes, you can adjust your payment. If you can increase your payment, you can become debt-free quicker. If you need to reduce your payment, it could take longer to finish your plan.

DMPs are available in England, Wales, Scotland and Northern Ireland.

Visit our FAQs to find out more about DMPs.

Find out if a DMP is the best way for you to clear your accounts today

Get in touch to see if a DMP is a suitable solution for you. Our experienced advisers are here to help you find the right solution for your circumstances. Call us on 0800 316 1833, message us on WhatsApp or Live Chat, or fill out our online form.

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)?

A 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.

A DMP with PayPlan

What are the benefits of a DMP?

What do I need to be aware of with a DMP?

How can I apply for a DMP?

FAQs

What's your approximate level of debt?

Great! It looks like we can help you.