CAB DEBT MANAGEMENT PLAN

Earlier in this guide we have listed a number of options that are available for dealing with debt and financial problems. One of these options is an Informal Arrangement or Debt Management Plan (DMP).

There is a basic nationally accepted process for dealing with money problems. In a nutshell, this involves seeing how much money you have left (if any) to go towards paying your debts after you have covered all your essential living expenses. Some bills have more serious consequences than others if you do not pay them. These are called priority debts and must be addressed first as already explained earlier in this guide.

Citizens Advice Bureau has produced this Debt Management Plan to allow and assist you to deal with your debts. It is completely free of management/arrangement charges so any payments you make going to your creditors in full. There are no start up costs or fees to pay and we do not receive any funding or commission from creditors out of your payments. It can be downloaded (along with the rest of this guide) from our website (www.invernesscab.org.uk) without entering any of your personal details.

This Debt Management Plan can be used as a long term or short term solution, depending on your circumstances and possible future options.

To use this plan efficiently, we advise you to fully read through this guide and use the contact numbers and websites suggested, including our own. The more knowledge you gain on finance and debt, the more confident you will be dealing with your creditors. You may be surprised by what you can achieve.

DMP Procedure

  • Step 1: Sort out all of your priority (if any) and non-priority debts

  • Step 2: List them all on the creditor checklists provided

  • Step 3: Contact priority creditors (if any) and make arrangements

  • Step 4: Write to non-priority creditors (use holding letter included)

  • Step 5: Complete Budget Sheet / Financial Statement and offer (after balances confirmed)

  • Step 6: Send copies of Financial Statement with offer letters (included)

  • Step 7: Creditor Acceptance / Commence payments (slips or standing orders)


    • You should always record all relevant correspondence regarding the above on the creditor checklists included as part of this pack.

    The Debt Management Plan procedure is set out in detail on the next pages. Please read through before you start your plan.

    On the next page Contacting Your Creditors & Calculating Offers