Will a DMP stop interest and charges being added to my debts?
No. No DMP provider can guarantee that a DMP will stop your creditors adding interest and charges to a debt.
In most cases, the contract you signed with a creditor allows them to add interest and charges, and they can continue to do this even if you’re making reduced payments through a debt management provider. However, in practice most companies will recognise that when you’re in financial difficulties, adding further interest or charges will only make things worse, so the majority of creditors will consider stopping these.
What happens if my situation changes when I’m on a DMP?
Most DMPs are flexible. If your situation changes you should let your DMP provider know.
Do my creditors have to accept the debt management plan offer?
No but that doesn’t mean they can reject the payments being made to them. If a creditor doesn’t accept the payments being offered, they’ll often pass the debt to a collection agency to deal with, and they may be more willing to agree to the DMP payments.