A debt management plan is a formal agreement between you and your creditors to repay your debts. A DMP can only be set up by a charity or DMP provider. It's designed to help people who struggle to repay their debts in full and on time, and could last for up to six years. The aim of a DMP is to make your debt repayments more affordable, so you can pay off what you owe within a reasonable timescale. Your monthly payments under a DMP are calculated based on what you can afford, after considering your essential living costs. You make one payment to the DMP provider, which is then distributed among your creditors.