Money Advice, Debt Advice & Debt Help
Will Creditors Agree to a Debt Management Plan?

Will Creditors Agree to a Debt Management Plan?

Will Creditors Agree to a Debt Management Plan?

Creditors will normally agree to a Debt Management Plan as long as you make your best effort to repay as much as you can and you do not treat any of them preferentially.

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Will my Creditors agree to a Debt Management Plan?

Your creditors do not have to agree your Debt Management Plan (DMP) payment proposals. What do you need to do to convince them to allow you to reduce your debt repayments? To find out more please visit:

Is your Debt Management Plan likely to be Agreed by your Creditors?

very likely if you show you are paying as much as you can afford

Do this by showing them your income and expenses statement

If you treat them all the same – none preferentially

do this by sharing out your disposable income on a pro rata basis and showing them all the payments.

Will your Creditors Freeze Interest when you start a DMP?

When you start a DMP your creditors are under no legal obligation to freeze interest or late payment charges.

They may not agree to your reduced payment proposals until you have made 2-3 regular payments and during this time they will almost certainly continue to add interest. They will probably also continue their collections activities against you in the form of both collection letters and telephone calls.

However when your creditors see that you are making your reduced payments on a regular monthly basis most will then freeze their interest and late payment charges. However this cannot be guaranteed for all creditors.

BMD Tip: It is possible that one or more of your creditors will simply refuse to stop adding interest to your account. If this is the case it will take much longer to repay your debts than you first thought and you should review whether a DMP is the correct solution for you.

What if a Creditor Refuses to Accept your Debt Management Plan?

Your creditors are not under any legal obligation to agree to your payment plan. However if a creditor refuses your payment offer you should not let this discourage you. You should continue making the payment you have offered to them and simply confirm that you are unable to pay more.

It is very important that you do not agree to pay any creditor more than you have calculated you can afford as this would leave you without sufficient funds to maintain the other payments in your DMP.

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