How does a DMP work?
Have you been told a DMP would be good for you? You may want to know more about how they work.
First, you work out a budget you can live on. This includes all your living costs like:
- Rent or mortgage payments
- Utility bills
- Food shopping
It should not include the payments you make to your debts.
Any money left over after your living expenses and priority bills are covered is used to make monthly payments to the people you owe.
You can make your own reduced payment arrangements by speaking to the people you owe. When you are on a DMP, the third party provider does this for you.
The people you owe are likely to accept a reduced payment if: