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DMP FAQ


How long will my DMP last?

  • Each case is individually accessed and all DMPs are dependent on your situation, your levels of debt and your disposable income. The length of your Financial management plan (DMP) is also dependant on if your creditors will freeze your interest rates. If your situation changes, you may be able to make larger payments and pay off your DMP sooner.

Can I stop paying during my DMP?

  • A DMP is not legally binding so you are free to stop your DMP at any time but you should notify your creditors and your debt management company first.

    If you are unable to pay back the amount that you have set out to pay then we would advise that you, contact your debt management plan provider and they may be able to renegotiate or put you on another plan.

    You should be aware that if you were to cancel your plan, your creditors may resume their interest rates and charges if frozen.

Will all my creditors agree?

  • Your creditors don't have to agree to the Debt Management Plan for you to start it. Your debt management company will let them know during the negotiation of your DMP.

How will my credit rating be affected?

  • In Short Yes, your Credit rating will be effected by a DMP as you will not be making contracted monthly repayments. Remember if you are behind already on payments then your creditors will share this information with Credit Reference Agencies such as Experian or Equifax.

Call FREE today on 0800 015 3135 or to try our FREE Debt Test click here

Will the harassment stop?


As this financial management plan is not legally binding we are unable to stop your creditors contacting you whilst you are on a DMP. No debt management company is able to guarantee this and you should not believe any company that states that letters and phone calls will stop, but we should be able to reduce them to a minimum once the DMP is established with your creditors and payments have been made.

Will interest and charges be frozen?


Your creditors do not have to freeze interest charges and it is up to your debt management company to try and do this on your behalf, we always advise going with a larger company due to the fact that they will have dealt with most creditors on numerous occasions before such as Baines £ Ernst.

Is my home at risk?


With this financial management plan your home is not at risk as a result. A DMP is an alternative to bankruptcy and is not a legally binding contract, so you will not lose your home if you continue to pay the creditors their agreed payments.

What happens with your bank account?


You do not have to change your account but we would advise to do so if one of your creditors is the bank where you hold your current account. Banks have the right to offset, so any money that is in your current account (or accounts held with the Bank) could be used to pay your debts within the bank. You can change your Bank Account to one that does not allow overdrafts so therefore not incurring any additional charges.

Can a CCJ or other Legal proceedings still be issued whilst on a DMP?


As a DMP is not a legally binding contract, your creditors are still able to take Legal action against you. This is less likely to happen due to your debt management company's experience of dealing with creditors. They can also advise you if this were to happen.

Speak to a Direct Debt Solutions advisor free on 0800 015 3135 and we'll advise which debt solution would best suit your debt problems or take the Express Debt Test now and find out which solution is best for you.

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Direct Debt Solutions is a registered trading style of Blair Endersby Ltd. Blair Endersby Ltd is registered in England and Wales under registration number 03849301. Registered office address, City Wharf, New Bailey Street, Manchester, M3 5ER. Registered under the Data Protection Act 1998 Licensed under the Consumer Credit Act 1974 No. 0480389. Our Insolvency Practitioners are licensed by the Insolvency Practitioners Association.

© 2010 Direct Debt Solutions