A debt management plan (DMP) is an agreement between you and the people you owe. You make an affordable monthly payment that is shared among your debts.
A DMP is usually set up and managed by a third party, like:
- A debt charity
- A debt management company
Your DMP provider helps you make a budget.
- This shows how much you can afford to pay to your debts after:
- Priority payments and
- Living costs
- Any money left over is shared fairly between the people you owe
You make a monthly payment to your DMP provider and they pass on the correct payments to the people you owe.