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Debt Management Plan

A DEBT MANAGEMENT PLAN (DMP) is an informal agreement between you and your creditors for paying back your non-priority debts. Non-priority debts are things like credit cards, loans and store cards.

What’s a DMP?​

You pay back the debt by one set monthly payment, which is divided between your creditors.
Most DMPs are managed by a DMP provider who deals with your creditors for you. This means you don't need to deal with your creditors yourself.
A DMP is not legally binding, meaning you're not tied in for a minimum period and can cancel it at any time.

How Can A DMP Help Clear Your Debts?

  • It can provide a helping hand to guide you through the process
  • Takes the hassle away from you when it comes to negotiating payment terms
  • It can help control creditor contact and assist you with tricky creditors
  • Will consolidate debts to one lower, affordable monthly payment
  • It enables you to spread your payments over a longer period that is more affordable

How does DMP work?

A Debt Management Plan (DMP) allows you to pay off your debts at a rate you can afford. It’s suitable if you have non-priority debts like credit or store cards, overdrafts and personal loans. Your DMP provider will help you work out an affordable payment and talk to your creditors. You make one monthly payment to the DMP provider who then pays your creditors for you.

PLEASE BE AWARE A DMP MAY SIGNIFICANTLY INCREASE THE LIFESPAN OF YOUR DEBT AS LOWER PAYMENTS WILL MEAN LONGER PAYMENT TERMS.
A DMP WILL ALSO HAVE AN ADVERSE EFFECT ON YOUR CREDIT RATING

How do I arrange a DMP?

Only a DMP Management Specialist is able to set up and manage a DMP. If you are in Debt and feel that a DMP might be the solution you're looking for then the first step is to speak to one of our advisers.

Feel free to discuss with our advisers your current situation, income, outgoings and debts. This will help us determine if a DMP is the best option for you. If yes, we will prepare your case and refer you to a DMP Management Specialist.

For more information on an IVA or any other debt help solution fill out the enquiry form here:

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All of our specialist debt advisors at the Clear Advice Services have over 10 years of experience in the Debt advisory sector...

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Call: 0161 5372015
Out of office hours: 0161 5372014
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