It is not a legally binding contract so creditors can still call you direct for payment and proceed with legal action which may lead to bankruptcy.
Paying a small amount against a debt only means it will take longer to pay off – if charges and interest continue this could add months, if not years, to the end of the DMP. Remember you will be repaying the debt until it is cleared, however long that takes.
Most firms add a ‘charge’ to the payment – this usually means if you pay them £100 each month they will keep a percentage to pay their time costs (approximately 15%)
If not set up correctly it could get you further into debt as interest and charges may not be frozen.
Spending outside the DMP – if you continue to use credit such as overdrafts and credit cards this could jeopardise the affordability of the DMP.
Although the DMP provider will strive to do their best for you, there are no guarantees that they will be successful.