Creating a budget is a vital aspect of anyone's financial planning, and it becomes even more critical in a Debt Management Plan (DMP) for several reasons.

Firstly, in a DMP, a significant portion of your available monthly income must go towards clearing your debt. Therefore, having a clear understanding of your essential expenses, such as household bills and mortgage/rent, is crucial.

Additionally, you might have other priority debts beyond your DMP, like loans secured on your home, requiring careful consideration in your planning.

Once your essential bills are calculated, your DMP repayments will be set at an affordable rate, and the budget provided will typically include provisions for emergencies, such as car maintenance.

However, these emergency payments can often pile up; making the situation worse for those with debt trouble. Its best to create an emergency fund – small or large– will help prepare you for these situations.

If you have any reservations about your DMP budget, don’t hesitate to get in touch. Our team of trained advisors will look over your case and if there’s anything that can be done to remedy the situation, rest assured it will be.