A Debt Management Plan (DMP) is an agreement between you and your creditors to pay
all of your debts. You make regular payments to a licensed debt management company.
The company distributes the payment between your creditors. There are both private and
charitable debt management companies.
How do I get a Debt Management Plan?
Set up a plan with a debt management company authorised by the Financial Conduct Authority (FCA).
The company works out your monthly payments. You’ll have to give details about your financial situation, eg your assets, debts, income and creditors.
The company contacts your creditors and asks them to agree to the plan.
Debt Management Plan Advantages
Debt management is an informal arrangement that avoids the need for formal insolvency
procedures such as an IVA or bankruptcy.