How long will a debt management plan last?
The length of the Debt Management Plan depends on each individual situation. It also depends on the level of debt and monthly surplus. If creditors freeze interest and charges, the length of the DMP can be dramatically reduced. For example: If £9,000 is owed and the client can afford to pay £150 per calendar month the DMP will last for just over 5 years (60 months). This applies only if the payments are maintained each month and the creditors freeze interest for the duration of the plan. However, if the creditors do not agree to freeze interest and the some of the companies will not, then the period of repayment will be longer. The DMP can be completed sooner if the clients circumstances improve and their payments can be increased.
