A debt management plan (DMP) is an agreement between you and your creditors to help you pay off your debt.
A DMP is usually set up and managed by a third party provider, for example a debt charity or debt management company.
Before setting up your plan, your DMP provider will help you put together a budget that shows how much you can afford to pay to your debts after all your priority payments and living expenses have been covered.
Any money left over after your essential costs are covered, you’ll share this out fairly between your creditors. Usually, you’ll make a monthly payment to your DMP provider and they’ll pass on the correct payments to your creditors.