Together, we’ll help you resolve your debt problems in the best way for you.
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manage your debt with a debt management plan
A Debt Management Plan (DMP) is a simple, affordable way to manage your unsecured debts.
With one lower monthly payment, you can repay creditors at a pace you can afford. Many lenders may even agree to freeze interest and charges, helping you become debt-free faster.
With one lower monthly payment, you can repay creditors at a pace you can afford. Many lenders may even agree to freeze interest and charges, helping you become debt-free faster.
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what is a debt management plan?
A Debt Management Plan (DMP) is an informal agreement between you and your creditors to pay back your debts at a more affordable rate.
It’s designed for people who want to repay what they owe but can’t keep up with the full monthly repayments.
A DMP may be right for you if:
- You can make some payments toward your debts, but not the full amount creditors expect.
- You need temporary relief because full repayments are not affordable right now.
- You prefer an informal solution rather than a legally binding one.
- You’re struggling with current repayments and need a clear plan to regain financial stability.
With a DMP, your monthly payments are reduced to an affordable level, giving you space to breathe while still working towards becoming debt-free.
Benefits of a Debt Management Plan (DMP)
A Debt Management Plan (DMP) can help you take back control of your finances and make
debt repayment more manageable. Here’s how a DMP can benefit you:
One Affordable Monthly Payment
Flexible Payments if Your Situation Changes
Freeze or Reduce Interest and Charges
Free Help Available
No Need to Deal with Creditors Directly
Short-Term or Long-Term Solution
Considerations Before Entering a Debt Management Plan (DMP)
While a Debt Management Plan can provide breathing space and help you repay your debts in
a more manageable way, it’s important to understand the potential drawbacks. Here are the
main considerations:
All Creditors Must Agree
For your DMP to work effectively, all your creditors should agree to the repayment arrangement. Some lenders may refuse or only agree temporarily.
Fees May Apply
Many providers charge a monthly management fee for setting up and maintaining your DMP.
This can reduce the amount going towards your debts. Free DMP services are available through organisations like MoneyHelper.
This can reduce the amount going towards your debts. Free DMP services are available through organisations like MoneyHelper.
Interest and Charges Are Not Guaranteed to Stop
While creditors may agree to freeze or reduce interest, they are not legally obliged to do so.
Some may continue to add charges, which could extend the time it takes to clear your debts.
Some may continue to add charges, which could extend the time it takes to clear your debts.
Impact on Your Credit Rating
Entering a DMP will usually appear on your credit file. This can make it harder to apply for
credit, mortgages, or loans while you are on the plan, and for some time afterwards.
credit, mortgages, or loans while you are on the plan, and for some time afterwards.
It’s a Marathon, Not a Sprint
A Debt Management Plan is designed to make repayments more manageable by spreading them over a longer period. While this reduces the pressure on your monthly budget, it can mean that your repayment term lasts longer, and the total amount you repay could be higher compared to paying off your debts more quickly.
How to Get a Debt Management Plan
1. Get professional debt advice
Speak with one of our friendly debt advisors. We’ll review your financial situation and explain whether a Debt Management Plan (DMP) is the right solution for you.
2. Explore your options
Your advisor will outline the different debt solutions available in the UK, including DMPs, IVAs, and other alternatives, so you can make an informed decision about what’s best for your
circumstances.
3. Create your Debt Management Plan
If a DMP is suitable, we’ll help you build a tailored repayment plan based on what you can afford. We’ll contact your creditors on your behalf and work to agree reduced payments.
4. Begin your journey to debt freedom
Once your DMP is set up and approved, you’ll start making one affordable monthly payment.
From there, you can take control of your debts and move closer to financial freedom.
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frequently asked questions
What happens when my Debt Management Plan finishes?
When your Debt Management Plan (DMP) finishes, you should have repaid your unsecured debts in full (unless creditors agreed to partial settlements). At this stage, you’ll be debt free and can begin rebuilding your credit rating. Some creditors may update your file as “partially settled” if not all the debt was cleared, but the important thing is you will no longer be making monthly DMP payments.
Is there a minimum or maximum time for a Debt Management Plan?
There’s no set minimum or maximum duration for a DMP. The length depends entirely on how much you owe and how much you can afford to pay each month. Some plans may last just a couple of years, while others could run for 5–10 years if you have larger debts and lower
disposable income.
disposable income.
How long will a Debt Management Plan stay on my credit history?
A DMP itself doesn’t appear as a specific entry on your credit file, but the reduced payments to creditors may be recorded as “arrangements to pay.” These will affect your credit score while the plan is active. Negative markers usually remain on your credit report for six years from the date they were added, even if the DMP has ended.
Do creditors widely accept a Debt Management Plan?
Most creditors are open to accepting a Debt Management Plan (DMP) if it shows you are making a realistic effort to repay your debts. While they are not legally required to accept, many lenders will agree because it ensures they receive regular payments rather than nothing. Some creditors may also freeze or reduce interest, but this cannot be guaranteed.
What happens if I stop paying my Debt Management Plan?
If you stop making payments, your DMP will fail, and your creditors may resume chasing you directly for the money owed. This could include letters, calls, adding interest, or even taking court action. It’s important to speak with your DMP provider if your circumstances change, as
your plan may be adjusted rather than cancelled.
your plan may be adjusted rather than cancelled.
How long does it take to set up a Debt Management Plan?
A DMP can usually be set up in just a few weeks once your income, expenses, and debts have been reviewed. The process is relatively quick compared to other debt solutions, and payments can usually begin the following month.
Will a Debt Management Plan affect renting?
A DMP itself won’t directly appear as a separate entry on your credit file, but your reduced payments may show as “arrangements to pay” or late payments. This can affect your credit score, which some landlords or letting agencies check. It doesn’t automatically prevent you
from renting, but you may need a guarantor or to provide proof of income depending on the landlord’s requirements.
from renting, but you may need a guarantor or to provide proof of income depending on the landlord’s requirements.
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Take Back Control of Your Debt
Taking back control of your finances doesn’t have to feel overwhelming. At Care About Money, we make the process simple and supportive, keeping you informed at every stage, so you know exactly what to expect.
We will call you to discuss your circumstances.
We help you decide on your best course of action.
We will help guide you through the process.
Care About Money Limited
Registered Office: The Granary 50 Barton Road, Worsley, Manchester, England, M28 2EB. Registered in England and Wales Registration number 13444035. ICO registration number ZB723901.
Care about money Ltd FRN 962287 is an appointed representative of Promethean Finance Limited FRN 662425.
Subject to eligibility and acceptance. Fees Payable. Debt write off applies to unsecured debts only and on completion of an IVA. If your IVA fails, it could lead to Bankruptcy, although this is rare and alternatives may be available. Your ability to obtain credit will be affected for the medium to long term. Homeowners may be required to release the equity in their property, if unable to release equity and equity is available creditors may request an additional 12 months payments in compensation.
Care About Money does not directly provide debt solutions, it will provide advice and refer you to one of it’s trusted debt solution providers should you choose a solution that suits your requirements. We will receive a fee if you enter into an agreement with one of our partners. Adele Cardoso is licenced as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association.
All work undertaken by Arkle Insolvency Limited and Adele Cardoso (IP number 30710) is subject to the Insolvency Code of Ethics. Subject to eligibility and acceptance. Fees Payable. Debt write off applies to unsecured debts only and on completion of an IVA. If your IVA fails any debts remaining will not be written off. Failure of your IVA could lead to Bankruptcy, although this is rare and alternatives may be available. Your ability to obtain credit will be affected.
Registered Office: The Granary 50 Barton Road, Worsley, Manchester, England, M28 2EB. Registered in England and Wales Registration number 13444035. ICO registration number ZB723901.
Care about money Ltd FRN 962287 is an appointed representative of Promethean Finance Limited FRN 662425.
Subject to eligibility and acceptance. Fees Payable. Debt write off applies to unsecured debts only and on completion of an IVA. If your IVA fails, it could lead to Bankruptcy, although this is rare and alternatives may be available. Your ability to obtain credit will be affected for the medium to long term. Homeowners may be required to release the equity in their property, if unable to release equity and equity is available creditors may request an additional 12 months payments in compensation.
Care About Money does not directly provide debt solutions, it will provide advice and refer you to one of it’s trusted debt solution providers should you choose a solution that suits your requirements. We will receive a fee if you enter into an agreement with one of our partners. Adele Cardoso is licenced as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association.
All work undertaken by Arkle Insolvency Limited and Adele Cardoso (IP number 30710) is subject to the Insolvency Code of Ethics. Subject to eligibility and acceptance. Fees Payable. Debt write off applies to unsecured debts only and on completion of an IVA. If your IVA fails any debts remaining will not be written off. Failure of your IVA could lead to Bankruptcy, although this is rare and alternatives may be available. Your ability to obtain credit will be affected.