Debt management plan (DMP)
A debt management plan (DMP) is a debt solution that can be used to help you pay back your debts at an affordable rate. It’s normally suitable if you're struggling to meet the original repayment amount you’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 if you're struggling to keep up with your normal debt payments, but who still have money available to you 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