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This is the place to ask questions if you are already in a DMP
By chipper12
#23144
I am starting a debt management plan but up until this point I have never missed a payment to any of my creditors. Is it best to keep paying until the DMP is agreed or should I stop paying straight away. I am really worried about how the creditors are going to take it. However there is simply nothing I can do as my circumstances have really changed and I can no longer afford the payments. Thanks in advance for any suggestions or advice.
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By Hayden
#23153
Hello chipper12 and welcome to the forum.

If you are starting a debt management plan (DMP) you should really stop paying your creditors straight away. A debt management plan is not like an IVA where the agreement is accepted and it starts. A DMP needs to be agreed by each individual creditor. This could take some time and the different creditors might agree at different times.

You have to stop making your normal payments because you cannot afford to keep them up. By stopping them and then starting to pay your DMP payments, your creditors can see that you are in trouble but are prepared to make as much effort as possible to repay your debt. After that they are far more likely to agree your DMP proposal quickly and freeze their interest charges.
#23246
Hello Chipper12

You must stop all payments to the creditors you are including in your DMP straight away. The sooner you do this, the sooner you will be able to start making your monthly DMP payment and the sooner that your creditors will start agreeing to the plan and suspending their interest charges.
By chipper12
#23263
Thanks very much guys. How long do you think it will take for all of the creditors to stop the interest payments? Clearly this is really important for me because if they keep adding interest for long the debts are never going to go down.
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By Hayden
#23274
Hello again chipper12

One of the problems of the DMP solution is that you are never quite sure when all of your creditors will stop their interest charges or indeed if they all ever will. Generally speaking if you are working with a good debt management company and you start making your DMP payments regularly then the creditors should stop adding interest after 3 months. However this is not guaranteed and you need to keep you eye on it. If you see that interest is still being added by any of them after this time, you should speak to your DMP comapny about this and find out what they are doing to resolve the issue.
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By Geraldine
#23323
Hi Chipper12

It is really important to keep a track of what your creditors are doing once you start a debt management plan. They should still send you regular statements so you can see if they are continuing to add charges. Do not just think you can hand the job over to a DMP company and then forget about it. The company may not be aware that interest has not been frozen unless you tell them.