A Debt Management Plan (or DMP) is an informal arrangement between you and your creditors, with a third-party, or debt management company acting with your authority to get you the best possible deal from the creditors.

Instead of making multiple payments each month to each of your creditors, you make one single payment to the debt management company who will distribute this fairly to your creditors. This single payment is based on what you can afford to pay (as long as this meets a minimum amount), not what the creditors are asking for.