How your DMP payment is worked out
Your Debt Management Plan (DMP) payment is calculated based on what you can realistically afford after your essential living costs have been covered. The goal is to make your debt repayments manageable while ensuring your day-to-day budget remains stable.
What affects the amount you pay into a DMP?
Your DMP payment is based on two things:
- How much money do you have coming in
- How much do you need to spend on essentials
The amount left after your essential costs are covered becomes your affordable monthly payment towards your unsecured debts.
What income is included when calculating a DMP?
We review your regular income from all sources, including:
- Wages or salary
- Benefits
- Pensions
- Any other money coming in
This helps make sure your payment reflects what you can realistically afford without being left short.
What costs are allowed in a DMP budget?
We look at your essential outgoings, which may include:
- Rent or mortgage
- Utility bills
- Food and clothing
- Travel costs
- Household expenses
- Childcare
Secured debts and priority debts aren’t included in your DMP. You’ll need to keep paying these separately and stay up to date with them.
How are DMP payments calculated?
The basic calculation is:
Total income – essential costs = your affordable DMP payment
You then make one monthly payment into your plan. We distribute this fairly among your creditors based on what they are owed.
Will my DMP payment stay the same?
Your plan should always remain affordable. We’ll review your situation at least once a year to check your payment is still appropriate. If your circumstances change at any point, please let us know as soon as possible.
If things improve and you can afford to increase your payment, your plan may finish sooner.
Until we’ve reviewed your situation, please continue making your regular payment wherever possible.
Need help or want to talk about your DMP?
We’re here to support you throughout your plan.
Get debt help online or call us on 0800 316 1833 for a confidential chat.
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Excellent, professional, friendly and empathetic service. PayPlan have given us our lives back!
Sandra Daly
Excellent, professional, friendly and empathetic service. PayPlan have given us our lives back!
Sandra Daly
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