How Long does it take to Set Up a Debt Management Plan?

Are you thinking of setting up a Debt Management Plan (DMP) but unsure about how long it takes? You’re in the right place. This article is here to help. 

We understand that dealing with debt can be scary, but you’re not alone. Each month, over 170,000 people visit our website seeking advice on debt solutions. 

In this article, we’ll discuss:

  •  Debt Management Plans and how they work
  •  The steps to set up a DMP
  •  The time it usually takes to set up a DMP
  •  Other options for managing debt
  •  The pros and cons of a DMP

Our team has been in your shoes; we’ve faced debt and made tough decisions. We’re here to help you figure things out.

Ready to learn more about how long it takes to set up a DMP? Let’s dive in.

How long does it take to set up a Debt Management Plan?

On average, it takes just a few weeks to set up a Debt Management Plan once you have supplied all the information required by your DMP provider. 

The exact amount of time it takes varies because each situation is different. The negotiating period may last longer than usual if the debtor has more creditors than usual, or if one or more creditors negotiates slowly or is reluctant to accept at first. 

How do I set up a DMP?

The two most common ways of setting up a Debt Management Plan is by using a DMP provider, also known as debt management companies, or using an applicable UK debt charity

The company or charity will provide initial advice to assess your suitability for a DMP and explore alternative debt solutions that you may be better suited for. If it is decided that a DMP is right for you, they will negotiate the DMP directly with your creditors so you dont have to do anything else – aside from providing information when requested. 

Can you arrange a DMP yourself?

You can arrange a DMP directly with creditors yourself to save on debt management company fees. Setting up a DMP yourself is not as common now that UK charities are offering to help for free. 

Trying to organise it yourself may not be as beneficial, as an experienced negotiator may secure a better deal with creditors – but this is never guaranteed. 

Do you have to pay for a Debt Management Plan?

Debt management companies charge a fee to set up your DMP by negotiating with your creditors, and they often charge an ongoing service fee which is taken from your monthly payment. Most of them do not charge for the initial consultation and personal assessment. 

However, you can get a free Debt Management Plan from some UK debt charities. These charities will not charge you for the initial assessment or to arrange your DMP with creditors. 

Debt Management Plan timeframe summary

The time taken to set up a Debt Management Plan varies between different debtors, but on average it takes 2-3 weeks to set up the DMP once you have given your DMP provider all the information they need. 

Thanks for reading our guide and for more answers to common DMP questions come back to MoneyNerd again soon. We have lots more to tell you about debt solutions in the UK!

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