Debt Management Plan (DMP)
A Simple Plan to Help You Take Control of Your Debt
A Debt Management Plan (DMP) could help you reduce stress, stop the pressure and repay what you can afford — one manageable payment at a time.
Flexible
payments to suit you
3-7
year term typically
1
monthly payment
What is a DMP?
A Debt Management Plan (DMP) is an informal debt solution in the UK for individuals facing non-priority, unsecured debts. It streamlines multiple debts into a single, manageable monthly payment, sometimes with reduced interest and charges, providing a structured approach to debt repayment.
Summary
- Debt Management Plans (DMPs) help manage non-priority, unsecured debts in the UK
- They consolidate debts into a single monthly payment based on affordability
- DMPs require seeking debt advice, picking a provider, and negotiating with creditors
- They can negatively affect credit rating if full monthly payments are not maintained
- DMPs are informal agreements, which means they’re subject to creditor approval
- Creditors are not obliged to accept reduced payments or freeze interest
Advantages of a DMP
✅ One affordable monthly payment
✅ Creditors are asked to stop contacting you
✅ Interest and charges may be frozen
✅ Flexible solution so you remain in control
Disdvantages of a DMP
❌ It can take a long time to pay off your debts
❌ Interest and charges may still be added
❌ You must stick to the agreed payments
❌
Your credit rating may still be affected
Not sure if an DMP is right for you?
We'll explain all available debt solutions and help you understand which options may be suitable for your circumstances
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What People Usually Want To Know
Will a DMP affect my credit score?
A DMP itself is not recorded on your credit file, but missed payments may already have affected your credit score.
Will bailiffs stop?
We’ll ask creditors to stop contact and enforcement action.
How long will it take to become debt free?
It depends on how much you owe and what you can realistically afford to repay.
Will interest and charges be frozen?
We’ll ask your creditors to freeze interest and charges where possible.
Do I need to pay a fee?
We may charge a small monthly fee for managing your DMP.
Alternatives to a Debt Management Plan
IVA
Combine your debts into one affordable monthly payment with legal protection from creditors.
Debt Relief Order
A free debt solution that can freeze interest and write off qualifying debts.
Bankruptcy
A formal debt solution that can help clear unaffordable debts and give you a fresh financial start.
Breathing Space
Receive temporary protection from interest, fees, and creditor action while you explore your debt options.