What is a Debt Management Plan (DMP)?
A Debt Management Plan is a simple and effective way to pay your non-priority creditors. Your counsellor will calculate the amount you can afford to pay after giving consideration to your priority debts – mortgage, utilities, council tax etcetera and day-to-day living expenses. Any money left is then deposited with us as a single monthly payment and then distributed to your non-priority creditors on your behalf.
A minimum of £100 is contributed towards the arrangement each month. The debt management company takes their 15% fee and the remainder is paid to creditors on a pro rata basis. Unlike an Individual Voluntary Arrangement, a Debt Management Plan is only a voluntary agreement and is not legally binding on creditors.
It is a plan tailored to help your debt problems. It involves calculating clients income and expenditure to reach an agreement on how much they can afford to pay each month. You will make the monthly payments to us and we will work as a mediator with your creditors and negotiate sensible repayment terms to satisfy all parties.
