A lot of people in Debt believe they have only a few options available to them when in debt. Debt Management Plans (DMP) are an option.

A DMP is an informal agreement between you and your creditors for paying back your debts. This is done by agreeing a monthly payment to the DMP Provider who
then divides the amount between your creditors on a pro rata basis. Annual reviews take place and the Debt Management Plan will run until all debts are repaid.

The length of DMP’s can vary hugely and will depend on the total amount of debt you have and how much you can afford each month. A full income and expenditure will be carried out to work out how much you can
afford to pay each month.

This can be very intrusive, as the aim of a DMP is to repay the creditors in the quickest possible time which will mean you have to sacrifice expenditure on what they deem ‘luxury’ items.

The majority of DMP providers will have their fee structure built into your monthly payment which usually means you will be paying more than the original debt back over the plan. Some providers appear to be a free service or even charitable, but
they are run from donations by the majority of firms people owe money to and also get a back-end commission payments when debts have been satisfied.

Below we have broken down our Debt in Contention service against a Debt Management Plan so you can compare.