A debt management plan (DMP) allows you to make a single, affordable monthly payment towards your debts.
A debt management plan is suitable for people who have some money left over each month, but don’t have enough to cover all their debt repayments.
How does a DMP work?
A DMP is normally arranged through a third party.
The third party will work out how much you can realistically afford to pay towards your debts each month. They will then contact your creditors asking them to accept a reduced monthly payment.
The third party will also manage the distribution of the money between all your creditors, so that you don’t have to deal with them.
How much does a DMP cost?
Many private debt management companies will set up a DMP for you, but will charge fees for their services.
There is no need to pay for a debt management plan. Charities like ourselves can set up your DMP free of charge, with no hidden fees attached.
We will also make sure that you only pay what you can afford, so you can keep up with your day-to-day living costs as well.
Free DMP advice
If you are considering starting a DMP, make sure you get impartial debt advice from a debt counselling charity, like ourselves.
We can advise you on whether a debt management plan or an IVA is suitable for your needs.
We have a high success rate with DMPs because we only ever recommend them in the right circumstances.