Debt Management Plan (DMP)
A debt management plan, also known as a DMP, is an informal solution designed to reduce your monthly payments towards your debts.
There’s no maximum or minimum debt level needed to enter a DMP, but there are some things to consider before applying.
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Check if you qualifyDebt Management Plan (DMP)
A DMP may be a suitable debt solution if you have some surplus money available each month once you’ve paid your priority costs such as rent or mortgage, food, and utility bills.
We’ll work with you to work out a budget that meets your household’s needs.
Benefits of DMP
What are the benefits of DMP? We’ve compiled a handy list of the main points below, click a heading to read more.
Only Pay What You Can Afford
You’ll only pay what you can afford to your creditors after we’ve put together a monthly household budget.
Include Your Household Bills
If you’ve fallen behind with your household bills you can add the arrears to your DMP to help get your accounts back up to date. You’ll still need to make your regular ongoing monthly payments.
One Monthly Payment
You’ll make one monthly payment and payments to your creditors will be managed for you.
Frozen Interest & Charges
Creditors can freeze interest and charges.
Creditors Dealt With On Your Behalf
You can have less contact with your creditors if you opt to use a third party as they will deal with them on your behalf.
Risks of DMP
What are the risks with DMP? We’ve identified and listed some of the main drawbacks below, click a heading to read more.
Long Term & Credit Impact
Reduced payments may lead to a longer arrangement term and could have a negative impact on your credit file.
Creditors Don’t Have To Agree
Your creditors don’t have to agree to your reduced payments, but your payments will still be sent anyway.
Frozen Charges & Interest Not Guaranteed
It’s not guaranteed that your creditors will freeze interest and charges.
Still Liable For Full Debt
You are still liable for your full debt level.
Creditors May Still Contact You
Your creditors are not obligated to stop contacting you, unlike other debt solutions like IVAs.
Reviewed Regularly
Your DMP will be regularly reviewed to make sure you’re paying what you can afford.
Total Debt Solutions Provide Friendly Debt Help and Practical Solutions
We treat every customer as an individual and our support is tailored to your personal circumstances, ensuring your best interests are central to our ethos.
We will run through all the options available to you and then we will guide you through the next steps of the process.
We define ourselves by our values as a business. These values inform the way treat our customers and our staff.
Practical Debt Management Solutions
Individual Voluntary Arrangement
Debt Management Plan
Trust Deed
Debt Relief Order
Debt Consolidation Loan
Bankruptcy
