Debt Management Plan (DMP) | Debt Solutions Explained

Debt Management Plan (DMP)

Information about the most popular debt solutions


Debt Management Plan (DMP) is an informal agreement with the people you owe money to (a creditor) to help you repay your debts in full with a reduced monthly payment over an extended period of time.

DMPs are provided by debt management companies and charitable organisations who negotiate with your creditors to lower your monthly repayments and freeze/lower interest and charges. Commercial companies usually charge a fee for this service, but you can seek independent help and advice from a charitable organisation.

A DMP is an informal alternative debt solution to Bankruptcy, Debt Relief Order (DRO) or Individual Voluntary Arrangement (IVA) which are formal insolvency solutions for people in debt.

Advantages of a Debt Management Plan

  • Informal arrangement that avoids the need for formal insolvency procedures
  • Creditors may suspend actions against you
  • Creditors may freeze interest payments
  • One monthly debt repayment

Disadvantages of a Debt Management Plan

  • Due to this being an informal arrangement, creditors can change their approaches at any time
  • Credit rating will still be affected
  • Reducing your monthly repayments will extend the length of repayment and may mean you pay more in total over a longer period
  • Your credit rating may by harmed during a DMP. Your DMP will be noted on your credit file and will be affected for a further 6 years after your last DMP payment.

OTHER DEBT SOLUTIONS

Individual Voluntary Arrangement (IVA)

Individual Voluntary Arrangement (IVA)

Bankruptcy

Bankruptcy

Debt Relief Order (DRO)

Debt Relief Order (DRO)

WHY CHOOSE M1 DEBT SOLUTIONS?

Our aim

Our aim

To help you understand the options available to you and help you on your road to debt recovery.

Experienced team

Experienced team

We have over 10 years experience helping our customers improve their circumstances and deal with their debts.

Experts on

Experts on

Bailiff enforcement action; Council Tax arrears; court fines; parking fines; gas, electric and water arrears; debt consolidation; and all debt solutions.

Tim – Reviews

Very professional. Very understanding and non judgemental.

Tim

Jayde – Reviews

Right from the beginning I felt reassured and confident he would be able to help me.

Jayde

Julie – Reviews

When I contacted M1 I was in a really difficult place and their efficient, considerate handling of my situation was quite simply amazing.

Julie

Paul – Reviews

The process was simple from start to finish and all the leg work was done by M1 Debt Solutions so I never had to stress out trying to make contact with all the companies I owed to.

Paul

Nadine – Reviews

They were great from start to finish. I'm so happy with this service. Thank you very much.

Nadine

Susan – Reviews

Amazing helpful people.

Susan

Tracy – Reviews

They dealt with my case very efficiently. They were very helpful and got me out of trouble with my debt and the horrible bailiffs!

Tracy

Frances – Reviews

They took care of everything. Very professional.

Frances

Cara – Reviews

Now I can be financially free quicker and can move on without all the hassle from my creditors.

Cara

Debt Management Plan

Updated on 2019-07-23T13:17:03+01:00, by admin_m1.