http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=29_debt_management_plan
We can give you more information about DMPs, as well as advising you on bankruptcy, individual voluntary arrangements (IVAs), debt relief orders (DROs) and self-help options for dealing with your debts.
If you have called us before and we have advised you that a DMP is a good option for you, please call our freephone number and select Option four to speak to the Referrals Team who can help you with your application. They will then send you our DMP application pack.
© Copyright National Debtline 2002 (updated June 2010).
Whilst we endeavour to keep the content of our website as up to date as possible, National Debtline cannot be held responsible for any changes in legislation or for developments in caselaw since this information was published.
Factsheet | Debt Management Plan (DMP)
- Help
- Are you struggling to pay credit cards, loans, store cards or catalogues? Would you like someone to help sort out your payments and talk to creditors for you? Would you like to be able to pay one affordable amount to all your creditors each month? If this sounds like you, a debt management plan may be just the thing.
What is a debt management plan (DMP)?
- A DMP is an affordable repayment programme set up by National Debtline and managed by an independent company.
- We help you work out what you can afford to pay each month.
- You pay this amount to the debt management company.
- The debt management company pays your money to all your creditors for you.
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Who can use the service?
Anyone who answers yes to these three questions.- Do you have debts of £5,000 or more?
- Do you have at least two or more debts with either the same or different creditors?
- Do you have £100 or more available income per month?
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How does it work?
First you need to put together a personal budget sheet to see whether you have enough available income. You can use our pack ‘Dealing with your debts’ which includes a budget sheet and a guide on to how to complete it.- Add up all your household income. Then add up all your essential expenses, like rent, mortgage, household bills, food, travel, child care.
- Take the second figure from the first.
- What you have left over is your available income to pay your credit debts.
- Information
- If your available income is £100 or more, a DMP might be a good option for you.
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Is it the best option for me?
A DMP is a good option for people who can afford to make regular payments to their creditors and want an easy, hassle-free way to pay. At National Debtline we look at all your options with you so that you can make the best choice.We can give you more information about DMPs, as well as advising you on bankruptcy, individual voluntary arrangements (IVAs), debt relief orders (DROs) and self-help options for dealing with your debts.
- Warning
- Creditors do not have to freeze interest under a DMP. You have to persuade each creditor that it makes sense for them to freeze interest and charges to avoid the debt increasing.
- Information
- Under the rules in the Consumer Credit Act 1974, your creditors will usually have to keep sending you annual statements, as well as arrears and default notices in a set format. This will happen even when you are in a debt management plan. Don't worry, this does not mean that there is a problem with your debt management plan. If you receive other letters from your creditors demanding payment, phone us for advice.
- Information
- If you would like more information on anything about your debts, phone us for advice.
- Remember
- Our advice is free, independent and completely confidential.
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What do I do next?
If you are interested in a DMP with National Debtline and you are a first time caller, phone us now on our freephone number 0808 808 4000. When you ring, select Option one to speak to an adviser who can give you more information about DMPs and advise you on your options.If you have called us before and we have advised you that a DMP is a good option for you, please call our freephone number and select Option four to speak to the Referrals Team who can help you with your application. They will then send you our DMP application pack.
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Your credit reference agency file
- Warning
- If you miss payments on a credit debt, this will be recorded on your credit reference file by your creditor whether or not you then set up a DMP. This will usually make it harder for you to get credit. Some creditors may also ask for a note to be put on your credit reference file to say you are on a DMP.
- Advice
- If you need further information on how to obtain a copy of your credit reference report, phone us for advice.
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- Remember
- You can always phone us for advice about any difficulty you are having in dealing with your debts.
© Copyright National Debtline 2002 (updated June 2010).
Whilst we endeavour to keep the content of our website as up to date as possible, National Debtline cannot be held responsible for any changes in legislation or for developments in caselaw since this information was published.
