This page explains the steps you need to take to set up a debt management plan.
How do I set up a DMP?
It's important to get debt advice from a debt charity or debt management company before you choose a debt solution.
If this option is recommended to you, some paperwork is needed to
get your DMP. The process of sending this to your provider is quite simple and usually can be done online.
The paperwork you will need to send in includes:
a signed DMP agreement, to authorise the DMP company to make payments on your behalf
- a signed Direct Debit agreement, so you can make payments
- proof of income, to check you can afford payments
- account numbers for all of your debts, to work out who you owe money to
The DMP provider will then work out who you owe money to, how much and what you can afford to pay. This information is used to work out the payment to each creditor.
We recommend that you send letters to your creditors to tell them you’re having financial difficulties and are setting up a DMP. You could use our sample letter for this.
A debt management plan (DMP) can affect you in several ways. As with any debt solution, there are a number of benefits and risks you should consider before entering into a DMP.