How long can a DMP potentially last for? Let's say I have £20k of debt and only a small amount of cash spare each month to pay to creditors (eg £100), but would prefer to go down the non-formal DMP route at least for several years if at all possible, maybe needing to continue to the very end (many years' time...) to pay off the debt...
The issue these days is not how long a DMP can last for but how long the DMP company can stay in business.
The majority are failing to get authorised and there is massive reorganisation in the market with at least 2 high profile failures.
If you use a DMP as stop gap that is one thing - but as a long term solution that is becoming increasingly risky.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
A DMP can last a very long time and there is also no guarantee that creditors will agree to write off the interest.
As lifenoteasy has said - there are a lot of companies falling by the wayside at the moment and the companies that have taken over the DMP's are now veering towards IVA's.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
In a DMP you normally have to pay the debt back in full and interest can sometimes continue to be applied. It's also not legally binding so at any timecreditors can demand full payment or bring recovery proceedings against you.
It's only a useful plan if you are able to pay the debt back after say a couple of years or need to buy some time whilst you arrange an alternative option.
Have a think about whether other options might be useful to you.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
You talk about preferring a "non-formal DMP" ... all DMP's are non-formal. The creditors can renege at will and often do -- especially when a debt is sold on to a less sympathetic collections firm.
"How long can a DMP last?" is a "how long is a piece of string?" question. Basically, as long as the creditors patience will last.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014