How your DMP payment is worked out

An affordable monthly payment amount for a Debt Management Plan is calculated according to your disposable income.

This means that all of your priority debts such as your mortgage, secured loans, car hire purchase payments, utility and food bills are deducted from your income after tax, along with any necessary bills. The amount that is left each month becomes the amount that you repay to your debt management company, who then distribute it proportionately between your creditors, based on your level of debt with each.

This means that you should always have enough money to cover your essential expenses and secured debts each month, whilst still having the reassurance that you are making payments to your creditors to ultimately get yourself into a debt-free position.


For expert advice on which debt solution is right for you, call PayPlan FREE on 0800 280 2816. We are open from 8am to 8pm Monday to Friday, and 9am to 3pm on Saturday. Alternatively, complete our enquiry form and we will be in touch as soon as possible.

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