A Debt Management Plan (or DMP) is an informal agreement with your creditors to reduce the monthly repayments that you make.

If you are struggling to maintain your monthly debt repayments, a DMP allows you to reduce the amount you pay to your creditors so that the payments fit within an affordable monthly budget.

Where to start

• Choose the solution – Use the “Which way should I turn” form to get your FREE DEBT REPORT
• Ask the experts – use the Beat My Debt Forum
• Call us now – speak to one of our advisors in confidence to see if a debt management plan can work for you.

Take the first step to beating your debt NOW – Call us free on 0800 077 6180

Stop Making Your Debt Problem Worse

The amount you can afford to pay to your creditors each month is known as Disposable Income. This is calculated by taking your total monthly household income and deducting all reasonable living expenses.

Paying your creditors no more than your disposable income through a debt management plan will enable you to start repaying your creditors without having to borrow more and constantly “Rob Peter to pay Paul”.
 
A Temporary Solution

A major disadvantage of a Debt Management Plan is that normally you will have to pay off all of your debt in full. At reduced monthly repayments, this could take a very long time, normally several years longer than the original agreement timescales.

However, the DMP can be a useful temporary solution if you believe that your financial circumstances are going to improve in the short term.