On this page:
Get started
What is a DMP?
How a DMP works
More about DMP
What happens during a DMP?
Alternatives
Get in touch
Blog articles
Debt Management Plan
A Debt Management Plan helps you manage your debts by lowering your repayments.
- Affordable monthly payment
- Take control of your finances
- We'll handle all lender contact
Get debt solutions personalised to you
- Summary of your income & outgoings
- See which solutions are right for you
- Real customer stories to look at
What is a Debt Management Plan?
- It's a debt solution designed for people who can't afford to repay their unsecured debts at the rate they originally agreed to.
- It allows you to repay your unsecured debts back in full, at a rate that's affordable for you.
- In 95% of cases, creditors agree to freeze interest and charges when you start a Debt management Plan.
- It may take longer to repay your debts and you may end up paying more overall but the lower payments will provide you with the financial breathing space you need each month.
They gave me my life back and are so friendly and professional. One word - BRILLIANT!
Michael was £6,462 in debt. He was put on a Debt Management Plan and is now debt free.
DMPs are available subject to eligibility and acceptance, alternative solutions may be offered. Fees payable if continuing service are provided. Our fees are explained here.
To find out more about managing your money and getting free debt advice, visit Money Advice Service, an independent service set up to help people manage their money.
How a Debt Management Plan works
A Money Advisor will assess your situation
We'll go through your finances and work out your income and expenditure. This will help us put together a budget so you can afford all your essentials, as well as one monthly payment towards your unsecured debts.
We'll deal with all creditor contact
We'll explain the situation you're in, ask them to accept a lower monthly repayment and to freeze any interest and charges on your lending. They're not obliged to agree but we'll work to show them why it's in their interest (as well as yours) and keep you informed every step of the way. 95% of our customers have seen their interest and charges frozen when they started a Debt Management Plan.
You'll find it easier to cope
Once we've agreed a new payment plan with your creditors you should find it's easier to afford everything you need month-to-month. On average, monthly debt repayments reduce by £252 for our customers.
It can be a flexible solution
A Debt Management Plan doesn't have to be a long term solution. It can be a temporary measure to help you manage your finances until your circumstances improve. We'll review your plan every year to make sure it's still right for you and give your creditors regular updates.
Typical example of a Debt Management Plan
This average example, based on all our customers who were recommended a DMP, shows how their payments were made more affordable.
These figures are based on the averages across all Debt Management Plans arranged for customers in 2015. We assess each customer individually based on their circumstances, and payments to the Debt Management Plan are based on what is realistic and affordable. If you complete your Debt Management Plan all debts included will be repaid in full.
Personal unsecured debt
£13,432
Number of lenders
9
Previous monthly debt repayments
£474
New monthly debt repayments
£222
More about Debt Management Plans
Debt Management Plans are affordable for you
You will only pay an amount that's affordable and sustainable. We'll always make sure you have enough to cover your essential living costs while you're on the plan. If anything changes, just give is a call and let us know.
Credit rating
A Debt Management Plan (DMP) will negatively affect your credit score. Your details won't appear on the Insolvency Register though, as a Debt Management Plan is not a formal debt solution.
How long does it take to arrange a DMP?
Most Debt Management Plans are set up within 30 days. It's possible that a little time will be added on to the process if we need to negotiate with your creditors, but there's no need to worry about this. We'll deal with the whole process for you.
You'll pay the whole debt back
A DMP gives you the chance to repay everything you owe at an affordable rate. If you complete the plan to the end, you'll be debt free.
It'll give you the breathing space you need
Sometimes all you need is some time to get on more secure financial footing, and a Debt Management Plan could give you that. It's possible to go on a Debt Management Plan temporarily. If your circumstances improve and you find you can resume your normal payments, you won't be locked into the plan.
There are other formal solutions that might be better in certain circumstances. Speak to a Money Advisor to make sure a DMP is right for you.
For further information about Debt Management Plans Read more
What happens during a Debt Management Plan
Find answers to debt worries by getting your personalised report.
- Get a simple overview of your income and outgoings
- Learn which solutions you qualify for and how they work
- See how we've helped others by reading customer stories
The alternative to Debt Management Plans in Scotland
Debt Management in Scotland
Debt Management Plans (DMP) are available across the whole of the UK, including Scotland. Debt Management Plans in Scotland work in exactly the same way as everywhere else. They allow you to continue making repayments towards your unsecured debts by offering your lenders new, lower repayments.
Your payments will always be affordable, leaving you enough for essential outgoings like rent, food and household bills.
However, if you live in Scotland, a Debt Arrangement Scheme (DAS) may be a more suitable option than a Debt Management Plan.
Find out more about Debt Arrangement Schemes
Debt Arrangement Scheme
Debt Arrangement Scheme is available exclusively to Scottish residents. It allows you to make lower repayments towards your unsecured debts for a longer time. You'll do this through a Debt Payment Plan (DPP).
All interest and charges will be frozen on a Debt Arrangement Scheme. And, as the DPP is legally binding, your lenders can't take further action against you, as long as you keep up your repayments.
A Debt Arrangement Scheme will affect your credit rating negatively because you're lowering your monthly repayments. Your details will also be recorded in the publicly available Debt Arrangement Scheme register.
Our Customer promise
You will not be called by a call centre
Our experienced, debt advisors will only call at a time convenient for you - and then be your single point of contact.
We'll take care of everything
From finding balances to dealing with your lenders - we will do it all for you.
DAC looks to help everyone
We have helped over 400,000 people with a range of solutions - it's important we find the right one for you.
Get the right information and support
If you are interested or would like more information on Debt Management Plans, you can talk through your options with one of our experienced money advisors.
Book a Call back
You can choose when you want us to call you
Start Live Chat
Type in your question for an instant reply
Read the latest blog articles...
Posted by: Christine Walsh |
September 28 2016
Living on a debt solution
Posted by: Emily Bancroft |
September 26 2016
Living on a debt solution
Posted by: Emily Bancroft |
September 24 2016
Living on a debt solution
Posted by: Christine Walsh |
September 23 2016
Tackling your debts