If you find you need to cancel your Debt Management Plan payment then the first thing you should do is to talk to the provider of your DMP, and let them know you are unable to make payment this month. Not making a payment can affect the arrangements set up with your creditors and cause you some issues. It all depends on the lenders you owe money too and what their internal policies are.
The Debt Management Provider might suggest you make a token payment for that month. Instead of your usual amount you might make a payment of £1 to each creditor so that they are at least getting something. Normally that is enough to keep them happy for a month. It also means you only make a very small payment for the month which is easier than your regular payment.
Why can’t you pay?
If you find you have missed a payment due to an unforeseen expense then it might be time to review your monthly budget. Perhaps things are costing you more than usual or Christmas has taken its toll on your finances. Whatever your reason it is definitely worth reviewing what you are spending against the figures your debt management company has so you are not struggling needlessly. The idea is that you should be able to cope with the budget you have been set but if it is not working then it is definitely time to review it.
Car repairs are always something that catch people out on a DMP and there isn’t too much you can do about that. Sure you can save a little here and there but some repairs just cost too much. The only options you are left with are not paying your debts for that month, or selling stuff like your mobile phone if you have one and its worth money.
If you find you are regularly missing payments to your Debt Management Plan then it might be worth chatting to your provider to look at how you can make things better for yourself. If you are currently paying for a debt management plan then you might want to consider one of free alternatives available from StepChange Debt Charity or Payplan. Their details can be found on the Get Debt Help page.
Good luck with your debt.