What is a Debt Management Plan?

A Debt Management Plan (‘DMP’) is a flexible, informal agreement between a debtor and their qualifying creditors to reduce their multiple monthly debt payments to an affordable level and combine these into one single repayment each month. A DMP is managed by a solution provider. Debt Management Plans are available across the UK, however residents of Scotland have access to specific debt solutions which may be more appropriate.


  • Your DMP provider can combine all qualifying debts into one repayment each month, making it easier for you to budget.
  • As a DMP is an informal plan, your payments and your term can be adjusted by your chosen DMP provider if your financial circumstances change.
  • The solution provider may be able to negotiate with creditors to freeze or reduce the interest and charges on included debt.
  • A DMP can slow down creditor contact and any communication from creditors included in the DMP can be redirected to your provider to deal with.
  • Should your situation improve, you can leave a DMP at any time.

Important Considerations:

  • Interest and charges are not guaranteed to be frozen or reduced.
  • A DMP will affect your credit rating, as you are making repayments below the level agreed in your original credit contracts.
  • There are fee-free DMPs available, however if you choose a fee-charging DMP company, you will usually be charged for their services within your affordable DMP payments. Fees vary between DMP companies.
  • A DMP does not write any of your debts off; these must be repaid in full
  • Reducing monthly payments to a level you can afford will generally increase the term of your debt.
  • There is no guarantee that any current recovery or legal action will be suspended or withdrawn.