StepChange DMP benefits
- Some companies charge a fee for DMPs - as a charity we don't. Every penny you send to us goes towards repaying your debts.
- We start by agreeing a monthly household budget. That way, only money you can afford goes to your creditors.
- If you've fallen behind with any of your priority household bills, you can use your DMP to get these bills back up to date.
- Some of your creditors may still contact you, but we will offer support and advice every step of the way.
- Most creditors will see that you’re repaying and agree to stop interest and charges as a gesture of goodwill, but some may not.
- As you’re making reduced payments your credit rating will be affected.
Other things to consider with DMPs
Your creditors don’t have to agree to the reduced payment offering in a DMP, but even if they don’t we’ll still send them your payments, as they legally have to accept them as repayment on your debt. Until your DMP is set up your creditors won't receive payments from us on your behalf.
You need to be aware that if creditors continue to add interest and charges, this could increase the total amount you currently owe.
As you’ll be making lower, more affordable payments it'll take longer to repay your debts on a DMP than if you were to continue to make your contractual payments.
Watch: An introduction to DMPs