Debt Management Plan (DMP)

If you have a debt problem, one of your options for sorting it out might be a Debt Management Plan (DMP). You can apply for a Debt Management Plan if you are finding it difficult to afford your repayments. DMPs are available across the UK, however residents of Scotland may find a Debt Arrangement Scheme to be more beneficial.

Remember, a Debt Management Plan might not be your only option and it might not be the most appropriate debt solution for your needs. Our trained advisors can assess your financial situation and help you find the most suitable option for you.

Listed below are some of the Main Advantages & Disadvantages of a Debt Management Plan

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  • A Debt Management Plan is an informal agreement to pay one affordable regular payment which is shared amongst your creditors

  • Interest and charges on included debts may be frozen

  • It can slow down creditor contact

  • Debt Management Plans are flexible, informal solutions and are not legally binding, so you can leave the plan at any time

  • Your Debt Management Plan provider will deal with your creditors on your behalf


  • There are fee-free DMPs available, however if you choose a fee-charging DMP company, you will usually be charged for their services monthly within your usual DMP payment. Fees vary between DMP companies.

  • Interest and charges are not guaranteed to be frozen

  • Creditors can still contact you about payments and may refuse to co-operate

  • A DMP may adversely affect your credit rating and your ability to obtain credit may be limited

  • Your debts will still have to be paid in full. Reducing monthly payments to a level you can afford will generally increase the term of your debts

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