Debt management plan (DMP)
Debt, arrears & collectionsAn informal agreement to repay debts at a reduced rate over time.
Overview
A DMP is usually arranged through a debt advice provider.
It can help make payments affordable, but it can affect your credit profile.
Why it matters
- It signals financial difficulty to lenders.
- It can reduce access to new credit.
- It can help you avoid default if managed well.
FAQs
Does a DMP affect my credit score?
Yes. It is typically recorded on your credit report.
Is a DMP legally binding?
No. It is an informal arrangement, but you should follow the agreed plan.
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