Debt Management Programme

 

The Debt Management Programme, known as DMP, is basically a debt repayment plan.  It is a monthly installment plan that allows the individual to gradually repay his unsecured consumer debts (eg. credit cards and overdraft), including the principal amount  and moderated interest charges, to all his creditors over a reasonable period of time.

 

This repayment plan is suitable for people who are willing (i.e. have the desire to avoid bankruptcy and the determination to live within a discipline budget) and able (i.e. have some money) to repay the unsecured consumer debts that they owe.  The monthly installment payment amount will be within the person's servicing capacity and he is expected to make prompt, full and regular payment during the repayment term.

The DMP is a voluntary arrangement between the individuals and the creditors.   In short, it is the creditors’ prerogative to offer an installment plan and to specify the terms of the repayment.

DMP status is not on public record but is registered with Credit Bureau Singapore whose data is accessible to its members, mainly the financial institutions.