Budgeting during a Debt Management Plan (DMP) involves several steps to gain a clear understanding of your financial situation.

Start by listing your total monthly income, including any additional benefits like pensions, savings, or rental income. Repeat this process for your regular expenses such as rent or mortgage, gas, electricity, water bills, council tax, phone, broadband, and TV subscriptions.

Various generic lists are available online, including one from PayPlan if needed.

Identify essential expenses after listing all outgoings, and subtract them from your total income to determine your disposable income. Check your bank statement to verify all outgoings and calculate the remaining balance, which represents surplus money.

This surplus money is your contribution to the DMP, consolidated into a single payment managed by PayPlan and distributed to your lenders.

While it may seem like a modest amount, effective budgeting isn't just about cutting spending on non-essential items; it's also about making your money go further.

Explore ways to save on essential expenses – consider a SIM-only plan, reassess TV packages, or evaluate the necessity of a gym membership.

Simple actions like carpooling to work, using public transport, and bringing a packed lunch can make a significant difference, saving money and benefiting both your budget and the environment.

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.