A Debt Management Plan (DMP) is an effective way for people struggling with their debts to ultimately become debt free.

Normally if a person is in debt they will probably owe money to several creditors. Debt management is designed to help people reduce their repayments back to their creditors and can be achieved by spreading the payments over a longer period of time, thus making them more manageable. A Debt Management Plan can also allow some borrowers to bring their expenditure and income back into line without taking on more borrowing.

The debt management service that we provide our clients with is simple; we offer a fast, confidential and effective solution to your debt problems that can assist you in legally writing off a large percentage of your debts. This is achieved by calculating all the debts, assessing income and budget, and re-negotiating interest rates and payments with the lenders, based upon evidence that the result will be a higher likelihood of collection by the lenders due to the debtors more realistic monthly repayment. Any money left over after your priority debts as Mortgage, Council Tax, Utility Bill and general living expenses have been accounted for is classed as your disposable income and will then be distributed to your creditors.

DMPs are a managed informal arrangement with creditors. A proposal is put forward on behalf of the debtor and is accepted always at the discretion of the creditors. Debt Free Nationwide and their partners recognise this and will only suggest a debtor pays what they can realistically afford after their priority costs though it is likely that creditors will want to review the debtor's situation annually to ensure they are paying as much as they can reasonably afford.