Debt Management Plan
Struggling with multiple debt payments? A Debt Management Plan (DMP) brings your debts into one affordable monthly payment.
Some debt solutions have fees. We’ll always explain any costs upfront with no pressure to go ahead.
You can find free debt advice and options to manage your debts from MoneyHelper. You can visit their website at moneyhelper.org.uk to find out more.
What is a DMP?
If you can’t keep up with your original repayments, a DMP allows you to repay your debt in full at a rate you can afford. It’s an informal agreement to manage unsecured debts like credit cards and personal loans.
It might take longer to clear your debts, and you might pay back more overall, but you’ll pay less each month which can ease financial pressure.
How it works
A DMP can help you take control of your debts in four simple steps:
We assess your budget
We look at your income and spending to work out what you can realistically afford each month.
We speak to your creditors
We contact the companies you owe to negotiate lower payments and ask them to freeze interest and charges.
You make one monthly payment
You pay us one amount each month and we share it out fairly between your creditors.
We support you throughout
If your circumstances change, we’ll review your plan and make sure your payments remain affordable.
Benefits and considerations
Here’s an overview of the key benefits and things to be aware of:
Affordable repayments
You make one monthly payment based on what you can realistically afford.
Repayment time
It will take longer to clear your debts and cost more overall because you’ll be paying less each month.
Leave creditors to us
We speak to creditors on your behalf, so you don’t have to.
Room to breathe
We make sure your monthly payment leaves enough for food, rent, bills and other essentials.
Credit rating
Your credit rating might be affected which could impact future borrowing.
Interest frozen
We’ll ask your creditors to stop adding interest and charges and request no further legal action is taken. They don't have to agree to this, but most do.
Reduced stress
You should receive less contact from creditors, easing anxiety and giving peace of mind.
FAQs
You can include most unsecured debt like credit cards, loans, overdrafts, and buy now pay later agreements in a DMP.
We charge a setup fee and a management fee which we take from your DMP payment. More details, including representative examples, can be found here.
You’ll be paying less than originally agreed so your credit file may show missed or reduced payments. You might also get default notices which impact your credit file for 6 years.
Most creditors will stop contacting you for payments once your DMP is in place, but you might still get letters about missed payments or account updates.
Your DMP will be reviewed regularly. If your income or spending changes, your monthly payment may be adjusted to keep it affordable.
Yes. A DMP is flexible and not legally binding. You can cancel it any time if your situation changes or you no longer need it.
Start with a simple conversation
Call us on 0161 804 2923 for confidential advice on your options.
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