How we work out what each creditor gets
We work out what to pay each of your creditors based on how much you agreed to pay them. By doing this, we can make sure that the people you owe money to are treated fairly.
We work out the payments this way because:
- The amount of time you agreed to pay a debt over is shown on your DMP. So a debt with a 5 year term will be paid off before a debt with a 10 year term
- Your debts will be repaid one by one. So you will see your progress and your debt total going down
For example: The amount you agreed to pay across all debts total £100 per month. A debt with a £30 monthly agreed payment would get 30% of your DMP payment.
Take a look at how that affects the different types of debts you may be dealing with: