What is a debt management plan?
A debt management plan (DMP) is an arrangement between a borrower and creditors to repay debts in a more manageable way, usually with reduced payments. A debt management company or charity will usually facilitate the negotiations to reduce interest rates or monthly payments to help the borrower with paying back the debts.
Can you get a car on finance with a debt management plan?
If you are on a debt management plan you can still apply for car finance, however you may find it harder to get accepted. DMPs do negatively impact your credit score, therefore the car finance options you get offered may come with high interest rates and unfavourable terms.
