Debt Management Plan (DMP)

A DMP is a personalised plan designed to help you manage your debts in a way that is affordable and realistic for you. It involves making a single monthly payment to us, which we then distribute to your creditors on your behalf. This ensures that your debts are being paid off in a timely manner and helps to avoid any late fees or penalties.

One of the main benefits of a DMP is that it can help to reduce your monthly payments. We work with your creditors to negotiate lower interest rates and potentially waive fees, which can help to lower your overall debt. Additionally, a DMP can help to simplify your finances by consolidating multiple debts into one manageable monthly payment.


Another benefit of a DMP is that it can help to stop harassing creditor calls and letters. Once you enrol in a DMP, we become the main point of contact for your creditors, which can help to alleviate some of the stress that comes with managing debt.

Advantages Of A DMP

  • Lower Monthly Payments: One of the primary advantages of a DMP is that it can help to lower your monthly payments. Through negotiation with your creditors, we can often secure lower interest rates and waive fees, which can reduce the amount you owe and make your monthly payments more manageable.
  • Simplified Finances: Managing multiple debts can be overwhelming, but a DMP can simplify your finances by consolidating your debts into one monthly payment. This can make it easier to keep track of your payments and stay on top of your debt.
  • Faster Debt Repayment: By reducing your interest rates and fees, a DMP can help you pay off your debts more quickly than you would on your own. This means you can become debt-free sooner and move forward with your financial goals.
  • Financial Education and Counseling: Many debt help companies, like ours, offer financial education and counseling as part of their DMP program. This can help you develop healthy financial habits and learn how to manage your money more effectively in the future.

Considerations Of A DMP

  • Credit score impact: Enrolling in a DMP can negatively impact your credit score, as it typically involves closing or reducing credit card accounts. However, this impact is often less severe than the impact of missed or late payments.
  • Extended repayment period: DMPs typically involve a longer repayment period than other debt relief options, such as debt consolidation loans. This means that you may end up paying more in interest over time.
  • Limited creditor participation: Not all creditors are willing to participate in DMPs. Some creditors may not be willing to negotiate lower interest rates or waive fees, which can make it difficult to create an affordable payment plan.
  • Payment discipline: DMPs require strict payment discipline, as missed payments can result in late fees and potentially even the termination of the plan. It’s important to ensure that you have a reliable source of income and can make the monthly payments on time.
  • Potential tax implications: In some cases, debt forgiven through a DMP may be considered taxable income by the IRS. It’s important to consult with a tax professional to understand the potential tax implications of a DMP.