Debt management plans - what are they?

A debt management plan (DMP) is a mechanism to assist you in repaying all your unsecured debts.  A DMP provider acts as an intermediary between you as someone that owes money (a debtor) and irms you owe the money to (your creditors).  

They will contact the creditors on your behalf to negotiate payments that you can afford based on your current financial circumstances. You will then pay the DMP provider one monthly payment which they distribute evenly between your creditors.