A Debt Management Plan, or DMP, is a solution to help people who are struggling with their creditor repayments. A DMP allows you to make one single monthly payment to your creditors. It is an informal agreement between you and your creditors where you commit to making a reduced payment to them. It can be set up by Payplan, free to the client, who will then distribute your payment to your creditors until the debt has been paid in full.Many people delay seeking help with their debts as they are embarrassed, afraid or do not know who they can trust. We have therefore created a brief guide to provide some help with starting the DMP process so that you can get your finances in order. When looking for a DMP company it is important to do your research…
- Contact your local Citizens Advice Bureau or contact National Debtline who will be able to provide you with a list of recommended free-to-client companies.
- Speak to friends, family or your employer as they might be able to recommend a reputable company to you.
- Visit forum or review sites to see what other people have done in a similar situation and find out about their experiences with different companies.
- A list of all of your creditors, including account numbers and amounts that you owe.
- A list of your income and expenditure, as this will help to determine what surplus you have available to pay your creditors.
- Information relating to any legal action that your creditors have taken against you, such as a County Court Judgement.