A Debt Management Plan (DMP) is an informal arrangement between you and your creditors which allows you to repay your debts, normally in full, at a rate that you can afford without relying on further borrowing. If during your DMP you are able to offer creditors a lump sum to settle your debts, it is possible to agree a reduced amount in full and final settlement. A DMP can be set up for free, however most private firms charge a fee. A DMP is different from a payment arrangement in that you will pay one payment to the debt management company who will then make the payments for you. This is not a service that One Manchester can provide but we are happy to talk you through it and help you find someone that can help.
Am I eligible for a DMP?
If you have a very low disposable income but can still afford to pay something off your debts then this is a solution that might suit you.
Which debts can be included in a DMP?
You can include non-priority debts:
You cannot include priority debts:
Who offers DMPs?
Many DMP providers will charge fees, however there are some providers who will help set up a DMP for free so it’s worth searching around. We can help you with this.
Things to consider
A DMP that lasts longer than 10 years is not likely to be the best solution as there might be others available that are better for you.
For help with debt, speak to our friendly One Money team of specialist advisers on 0330 355 1000 or email firstname.lastname@example.org