Debt Management
Learn more about Debt Management Plans
What is a Debt Management Plan?
A Debt Management Plan is an informal repayment agreement between you and your creditors to pay all of your debts. Debt Management Plans are also know as DMPs and are available to everyone in the UK.
Debt management plans are an alternative debt solution to formal arrangements, such as an Individual Voluntary Arrangement and Bankruptcy for residents of England, Wales and Northern Ireland or Protected Trust Deeds, Debt Arrangement Schemes and Sequestration for residents of Scotland.
How do Debt Management Plans work?
Debt management plans are normally used under these circumstances:
- You can only afford to pay a small amount to creditors each month
- You have problems with debt but will have the ability to make repayments within several months
- You can organise a payment plan with your creditors yourself, use a licensed Debt Management Company (fees are charged) or via the free sector
- Payments are made regularly to the company
- The company divides the money between all your creditors
Benefits and Considerations of a Debt Management Plan
Benefits of a Debt Management Plan
- You only pay one affordable payment to the DMP company
- Flexibility – The payment is flexible depending on your circumstances, it can increase or decrease
- Payments can be reduced & interest rates can be frozen by creditors, however, they are not obliged to do this
- Some charities & organisations provide this service free of charge (you can contact the Money Advice Service for more information)
- Avoids the need for a Formal Insolvency Procedure
Considerations of a Debt Management Plan
- All the creditors need to agree to their individual arrangement for this plan to be effective
- Interest & charges are not guaranteed to be frozen
- Your credit rating is affected as your monthly payments are not contractual
- Debt management plans can affect your credit file for a minimum of 6 years, as in most cases you will have defaulted on the original credit agreement terms once you enter into the arrangement
Other Debt Solutions
Solutions for unsecured debts
Debt solutions can help with many unsecured debts including:
Council Tax Arrears, HMRC debt & benefits overpayment
Payday loans, bank loans & overdrafts
Credit cards, store cards & catalogues
Bailiff Enforcement & Debt Collector Action
County Court Judgments (CCJs) & Attachment of Earnings
Creditors in the UK
Overcome problem debt with major creditors in the UK including:
Service you can trust
We pride ourselves on delivering the highest level of service to help people find a solution to overcome problem debt.
Read real reviews of our service on Trustpilot.
Start your journey today and see which solution suits your needs.
Speak to a debt help expert now on 0161 823 4974 or complete the form to book a call back.
They helped us immensely throughly would absolutely recommend them.
C Garrard, Trustpilot 5*
Service you can trust
We pride ourselves on delivering the highest level of service to help people find a solution to overcome problem debt.
Read real reviews of our service on Trustpilot.
Start your journey today and see which solution suits your needs.
Speak to a debt help expert now on 0161 823 4974 or complete the form to book a call back.
They helped us immensely throughly would absolutely recommend them.
C Garrard, Trustpilot 5*
How to get started in three steps
Be guided every step of the way to get you back in control of your debts
Contact us
Complete the online form or call us on 0161 823 4974
Talk to the experts
Speak to a debt specialist and understand all options available based on your individual circumstances
Make an informed decision
Gain all the information you need to make an informed decision about your financial future
This may not be suitable in all circumstances. Fees apply. Your credit rating may be affected.
Take the firsts steps to overcome problem debt
Complete the form and book a call back with an expert advisor.
All financial solutions are subject to eligibility and acceptance. Fees may apply.
Free debt counselling, debt adjusting and providing of credit information services is available. You can find out more by contacting Money Helper.
Free debt counselling, debt adjusting and providing of credit information services is available. You can find out more by contacting Money Helper.