A Debt Management Plan (DMP) is an informal arrangement between you and your creditors which allows you to repay your debts, normally in full, at a rate that you can afford without relying on further borrowing. If during your DMP you are able to offer creditors a lump sum to settle your debts, it is possible to agree a reduced amount in full and final settlement. A DMP can be set up for free, however most private firms charge a fee. A DMP is different from a payment arrangement in that you will pay one payment to the debt management company who will then make the payments for you. This is not a service that One Manchester can provide but we are happy to talk you through it and help you find someone that can help.
If you have a very low disposable income but can still afford to pay something off your debts then this is a solution that might suit you.
You can include non-priority debts:
You cannot include priority debts:
Many DMP providers will charge fees, however there are some providers who will help set up a DMP for free so it’s worth searching around. We can help you with this.
A DMP that lasts longer than 10 years is not likely to be the best solution as there might be others available that are better for you.