What are the features of a Debt Management Plan (DMP)?

• Reduce your monthly repayments
• We handle negotiations with all creditors
• You must be able to afford a £100 payment each month (however in some exceptional cases we may be able to reduce this to £80 per month)

A Debt Management Plan works by enabling us to take one affordable monthly payment from you. It's affordable because we calculate it against guidelines that ensure you have what you need to live (things like your housing costs, children's and pets' needs, etc are all taken into account: These guidelines have been agreed with creditors and are usually accepted). We then distribute this to all your creditors proportionately based on what they are owed - this means everyone gets their fair share.  Within these payments we do deduct our initial and, thereafter, monthly fee.  By letting us help you this way, you can pay off your debt with the comfort that although finances may tight for some time to come, you will be able to make headway and work towards a debt free future with a clear mind and head held high.
Debt Management Plans are provided by debt management companies, like our sister company Abacus, who negotiate with your creditors to change your debt repayment terms and are an alternative option to an IVA, DRO (Debt Relief Order) or Bankruptcy.
Debt Management Plans (DMPs) can be a good debt solution, especially if your problems are likely to be short term.
A debt management plan can be put in place by a debt management company or made by yourself ("self help debt management"). Sometimes commercial and charitable (free) debt management plans are simply a step on the road to bankruptcy, offered to debtors who are terrified of the word insolvency. However in many circumstances they can be an appropriate solution, especially if you can nearly pay all your debts or if you strongly believe your problems will be short term.