What is a Debt Management Plan?

A Debt Management Plan (DMP) is an informal agreement between you and the companies you owe money to that allows you to repay your debts in reduced payments that are more affordable for you.

It’s suitable for anyone struggling to make their contractual payments (the repayment amount originally agreed with the companies they owe money to) each month but who still has money left over after they’ve paid for their essential living expenses such as household costs, travel and clothing.

Is a DMP right for me?

• It could be the right solution for you if you have unsecured debts and if you are struggling to make repayments. You’ll pay back everything that you owe without having to release any equity you may have in your home or other assets to the companies you owe money to.
• It might not be the right solution for you if you have a large amount of debt because it could take you a long time to repay it, depending on how much you can afford each month. At PayPlan, we will advise you of all the available options and discuss how these could affect you.

If you are unsure of what is the best option for you, contact PayPlan to discuss your options with our specialists either by phone or online.

How does a Debt Management Plan work?

A Debt Management Plan (DMP) is an agreement between you and the companies you owe money to that allows you to make an affordable payment to repay what you owe. This is set up and managed through a third-party provider such as PayPlan. We don’t charge fees for our DMPs, so every penny you pay goes towards your plan. Some companies do charge set-up and management fees, so it’s worth doing your research beforehand.

Before setting up a plan, we’ll help you put together a budget that shows how much you can afford to pay to the companies you owe money to after all your priority payments and living expenses have been covered.

Any money you have left over after your essential costs are covered is the amount that you can afford to pay towards your debts. You’ll make one monthly payment to PayPlan, and we’ll distribute it to the companies you owe money to. This will be split fairly between them. The company you owe the most to will get the biggest share of your monthly payment, and the company you owe the least to will get a smaller share.

What are the benefits of a dmp?

We’ve put together an ‘at-a-glance’ guide to help you decide if a DMP could be right for you:

Getting a DMP with PayPlan

• You’ll first have an assessment with one of our advisors – we can do this over the phone, on WhatsApp or Live Chat. We’ll create a budget with you to work out how much you can realistically afford to pay towards your plan.
• If a DMP is an option available for you and you choose to go ahead with it, we’ll contact your creditors to explain your situation and let them know the amount you’ll be paying them through your plan.
• In a DMP, you’ll make one payment to us each month, and we’ll do the rest. We’ll distribute your payment fairly between the companies you owe money to.  
• You can send messages, manage your plan, and keep track of your progress online with PayPlan Plus.

To find out if a DMP could help you get your debts under control, call us today on 0800 316 1833 or get debt help online.