What is a Debt Management Plan

What is a Debt Management Plan? | DMP

A Debt Management Plan is an informal agreement between you and your creditors to pay back your unsecured debts with a monthly payment that you can afford. Your monthly payment is determined by carrying out an analysis of your individual circumstances and seeing what is realistically affordable for you to pay.

By looking at ways of maximising your income or reducing any overspending and by identifying and prioritising your most important debts we can then produce a Financial Statement which reflects your personal circumstances.

How long does a Debt Management Plan last for?

A DMP can last until your debts are repaid in full or until you or your creditors want to come out of the agreement. It can be a good way for you to reorganise or get on top of finances that have gotten slightly out of control or very unmanageable.

Is a Debt Management Plan (DMP) right for you?

We can help with any amount of debt, small or large. Our advice is free and, if your circumstances suggest that a debt management plan is your best option, we will propose an informal arrangement with your creditors to pay your debts.

To find out more, call us free on 0800 043 0200 and speak to one of our friendly advisers or fill in the "Callback request" form on this page. You can also Apply online now.

We can handle the headache of dealing with your Debt Management Plan

If you decide to enter into a debt management plan with us, we can liaise with your creditors on your behalf and manage your debt repayment programme. You make one affordable monthly payment to us and we distribute this on a fair and equitable basis to all your creditors regularly every month for as long as you are in the programme.

We always ask creditors to respond sympathetically to your circumstances by freezing or reducing interest in order that your monthly payments will help to reduce the capital balance. Not all creditors will agree to this and this could lead to you repaying your debts over a longer period and consequently to an increase in the overall debt.

We will write letters and correspond on your behalf in order to negotiate a settlement plan for all your outstanding debts and act as an intermediary between you and your creditors and as administrator of your plan.

Our debt management plans are flexible and can be altered at times to suit the change in your circumstances, good or bad. There are no financial penalties if you choose to cancel your plan and association with us.

Constantly improving your solutions.

Because we regularly review your plan, if we discover an alternative solution, we will inform you immediately, so you can switch if you feel it will be of help to you.

Debt Management Frequently Asked Questions

See our Frequently Asked Questions (FAQ) about Debt Management Plans.

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* A fee is only payable where further services are requested. All fees will be explained in detail and discussed prior to commencement of any service or debt repayment plan. Repaying debt over a longer period may increase the total amount to be repaid. Your ability to obtain credit will be affected in the short term and might be affected in the medium to long term. Creditors may still contact you with promotional material or to fulfil contractual obligations to you but they should deal with us in all aspects relating to the outstanding debts.

Phonecalls: Calls from a landline are normally free. Please consult your provider if you are unsure. Calls from a mobile may be subject to charges. If you get charged just ask us to call you back for free.