The basicsWhat is a Debt Management Plan (DMP)?
A Debt Management Plan (DMP) is an informal arrangement between you and your
creditors that lets you repay what you owe at a pace you can genuinely afford. Unlike formal
solutions — such as an IVA — a DMP stays flexible and does
not tie you legally to fixed terms. You combine your unsecured debts into one monthly payment
matched to your financial situation. Interest and charges are often frozen for the duration of
the plan, but the full amount you owe remains your responsibility until it is repaid in full.
BenefitsWhy consider a DMP?
For many people, a DMP is a way to regain control of their finances without turning to formal
insolvency procedures. The main reasons people choose this solution:
Advantages of a DMP
- A lower monthly payment — all your unsecured debts are combined into one manageable payment.
- Quick to set up — a plan can usually be prepared and started within around a month.
- Flexibility — the plan can be adjusted if your financial situation changes.
- An end to the pressure — creditors usually pause collection activity once the arrangement takes effect.
Drawbacks and risks
- No debt write-off — you repay the full amount owed; a DMP does not reduce the debt itself.
- No guarantee — creditors are not obliged to accept the payment you propose.
- Creditors may still make contact — despite the plan, creditors can still get in touch.
- Impact on your credit score — taking part in a DMP can affect your credit history negatively.
EligibilityIs a DMP right for you? Who is eligible
A DMP works well for people who can pay a certain amount towards their debts each month but
cannot clear the whole balance in a short space of time. To be eligible for a DMP, you will
usually need to meet the following conditions:
- You are able to pay something each month towards your debts.
- You are not able to repay your debts within six months.
- You have surplus income once your essential living costs are covered.
- You have several unsecured, non-priority debts (for example credit cards, personal loans).
- You want to combine your debts into one convenient monthly payment.
UK coverageWhich parts of the UK is a DMP available in?
A DMP (Debt Management Plan) is available across the whole of the UK — in England,
Wales, Northern Ireland and Scotland. It is an informal, voluntary
solution with no legal protection, which is why it works on the same basis in every part of
the United Kingdom.
The processHow does it work, step by step?
We guide you through the whole process — without pressure and at your own pace. Here is how it works:
- Free assessment of your situationYou complete a short questionnaire about your financial situation and we check whether a DMP is right for you.
- A conversation with an adviserWe discuss your goals and the realistic options. We work out the payment you can afford each month.
- Preparing the planWe build a repayment plan tailored to you and contact your creditors on your behalf.
- Time to think it overNo pressure — you have as much time as you need to make your decision calmly.
- Setting up and repayingYou make one monthly payment and we distribute it between your creditors for the whole duration of the plan.
CostsHow much does a DMP cost?
Reviewing your available options is completely free — no upfront fees and no
hidden costs. Some creditors may add an administration charge, but it is included within your
single monthly payment, so there is no extra amount to catch you out. Bear in mind, though,
that under a DMP you repay the full amount you owe — the plan spreads it into
affordable payments but does not write any of the debt off.
SupportYou do not have to face debt on your own
Facing debt can feel overwhelming — but the sooner you ask for help, the easier it is to find
a solution. There are no “magic fixes” for getting rid of debt — only legal, proven
routes, and a DMP is one of them. A free consultation with our adviser is with no
obligation and does not affect your credit score until you accept the solution proposed.
