1. It's a private agreement
A Debt Management Plan is not a formal insolvency procedure. As such your name is not included on any formal register. No-one will find out that you are in the Plan unless you chose to tell them.

2. Debt payments reduced to an affordable amount
Your monthly payments are reduced to a level which you can afford. This is known as your surplus (or disposable) income. It is the amount you can pay each month after all of your other reasonable living expenses are accounted for.

Using a DMP should mean you always have enough cash to pay your priority bills each month without having to borrow more.

3. Flexibility – Agreement can be changed at any time
The Plan is an informal agreement with your creditors. This means you can change the payments you make if your financial situation improves or gets worse. In addition you can stop the agreement at any time and use a different solution if you wish.

4. Not all your debts have to be included
You do not have to include all of your creditors in a DMP. You may be able to leave a debt out of the arrangement if you have to. However this is not necessarily recommended.

5. No obligation to release equity from your property
Homeowners often chose a a debt management plan because there is no obligation to release equity from your property. However you may still wish to do so to enable you to repay your creditors more quickly if you have the opportunity.