“Borrowers in the UK have an unprecedented amount of unsecured debt and there are occasions where the burden can become too much for some people,” says Rob Barnard, Director of Sales at Pepper Money.

When borrowers can only afford to pay less than their contractual repayments, a Debt Management Plan (DMP) company can help.

A borrower can approach a DMP company to arrange an affordable payment plan with creditors through a non-binding agreement between the borrower and their creditors to repay debts.

“Placing a case for a client in a DMP can be an interesting challenge,” says Rob.

So how do DMPs work and what does this mean for the credit record of the borrower?

>> Find out by reading Pepper Money’s Debt Management Plans Explained