Debt management plan (DMP)
A debt management plan (DMP) is a debt solution that can be used to help people pay back their debts at an affordable rate. It’s normally suitable for someone struggling to meet the original repayment amount they’ve agreed with their creditors.
If you’re on a DMP you make reduced monthly payments towards your debts. This means a DMP is suitable for people struggling to keep up with their normal debt payments but who still have money available to them after all essential living expenses are paid.
A debt management plan (DMP) is usually arranged on your behalf by a third party provider, for example a debt charity or debt management company. This means you’ll make a single monthly payment to the DMP provider and they’ll contact all of your creditors and send each of them a share of your payment every month.
Video: An introduction to DMPs