Once a DMP provider calculates what you can realistically afford to pay towards your debts each month, and that it’s the most suitable solution for dealing with your debts, your DMP can be set up. Once the necessary paperwork is sorted out the provider will then contact your creditors to explain your situation and confirm the amount you’ll be paying them.
You’ll need to send your debt management plan provider a payment each month, usually by Direct Debit. The DMP provider will then pay your creditors on your behalf according to the terms of the plan. You don't have to worry about contacting your creditors to reduce your payments; this’ll be done for you.
As a charity we offer free debt management plans, however some DMP providers charge for them. If you have a DMP with a fee-charging company, it means that you’ll pay fees to them as well as making payments towards your debts. As a result it’s likely to take you longer to pay off your debts.
Considering a DMP?