DEBT MANAGEMENT PLAN
A debt management plan (DMP) is an agreement that you can come to with creditors whereby you pay one monthly amount which is then distributed equally to your creditors.
Unlike an IVA there is no debt forgiveness in a debt management plan and interest may continually be added to the account. There are a number of creditors which will freeze interest, however not all of them will.
A DMP should only be entered into if this is structured and the time frame to pay off your debts is realistic and achievable. There are debt management plans which can go on for years and you may be paying these off forever. If you fall into this category then you should have your DMP reviewed to ensure that you are on the right track.
A debt management plan once implemented will stop any further creditor harassment that you may be receiving.
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