What Is A Debt Management Plan (DMP)?
A Debt Management Plan (DMP) is an informal agreement between you and your unsecured creditors. It will normally allow you to negotiate lower repayments over a longer period but it’s important to recognise that and in some circumstances, you might end up owing more over time as interest accumulates.
Orchard Debt Solutions do not offer Debt Management Plans. We can however put you in-touch with a business partner who is able to offer Debt Management Plans.
Debt Management Plan Advantages
- Lower monthly repayments can be agreed.
- Details of the DMP will not be made public.
- Some creditor might agree to freeze interest.
- You should receive less contact from creditors.
Debt Management Plan Disadvantages
- It is not legally binding.
- Creditors might not agree to freeze interest
- All creditor must be negotiated with separately.
- Fees will increase the level of debt.