Things to consider while on a DMP
Once your DMP starts, you’ll need to stick to your agreed budget. You’ll also need to review your budget with your provider at least once a year. Your provider will contact you to arrange this.
If you receive a cash windfall during your DMP, we recommend you contact your DMP provider to talk about how this can be best used. Also, keep in mind that because you’re making reduced payments on your debts, a DMP will affect your credit rating.
When on a DMP, interest and charges may still be added to the amount you owe. Also, being on a DMP does not protect you from further court action. Creditors can continue to contact you and are likely to send you annual summary statement of repayments. In fact, they’re obliged to do this at least once a year due to regulations put in place by the Financial Conduct Authority (FCA).