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Pros and Cons of DMP's
Advantages:
You make payments that you can afford.
Your payments can be reviewed every so often so that any changes to your situation can be taken into account.
Can be used to tide you over until your financial situation improves.
It can be drawn up by you.
Disadvantages:
They are not legally binding.
Creditors are free to take whatever legal proceedings against you they wish at any time.
It is common practice for creditors to continue to obtain county court judgments, a third party debt order or a charging order against a debtor's property; even when they are making every effort to pay.
Interest is not always frozen and, as you are in default, will continue to accrue at penal rates.
You may never be rid of your debt.
You must pay your creditors in full.
It will be noted on your credit record