What is a Debt Management Plan?
A Debt Management Plan (DMP) is an informal arrangement between you and your creditors to repay your debts at a rate you can afford. It’s designed for non-priority debts like credit cards, personal loans, and overdrafts.
By consolidating your repayments into one manageable monthly payment, a DMP helps simplify your finances.
At Debt Support Service, we act as a trusted intermediary, negotiating with your creditors to potentially freeze interest and charges.
How does the Debt Management Plan work?
Assessing your budget
We start by reviewing your income and essential expenses to calculate what you can afford to pay toward your debts each month.
Negotiating with creditors
Our team communicates directly with your creditors, proposing a repayment plan tailored to your financial situation. We also request that they freeze interest and charges.
Making payments
You make a single monthly payment to us, and we distribute it to your creditors based on the agreed terms.
Flexibility
A DMP is flexible, so if your financial circumstances change, we can adjust your plan to ensure it remains manageable.
Is a Debt Management Plan right for me?
A DMP may suit you if:
You are struggling to keep up with non-priority debt repayments (e.g. credit cards, personal loans, store cards).
You have a steady income and can commit to regular monthly payments.
You want a flexible solution that can adapt to your changing circumstances.
It may not be suitable for:
Priority debts like mortgage arrears, council tax, or utility bills.
Individuals seeking debt forgiveness or legal protection from creditors.
Our advisers will assess your situation and guide you in determining if a DMP is the best option for you.
Benefits
Simplified payments:
Make one manageable payment each month.
Negotiation with creditors:
We handle all communications and work to freeze interest and charges.
Flexibility:
Adjust your plan if your financial situation changes.
Support:
Access ongoing advice and assistance throughout your plan.
Considerations
No guarantees:
Creditors are not legally obliged to accept the plan or freeze charges.
Impact on credit score:
Your credit rating may be affected while the plan is active.
Fees:
Fees will apply. See our terms of business
Examples of debts that can be included*
Credit & Store Cards
Personal loans
Catalogues
Overdrafts
Buy Now, Pay Later
Payday loans
Examples of debts that may be included*
Utility bill Arrears
(gas, electric, water)
HMRC debts
(self-assessment)
Benefit overpayments
(DWP or local authority)
Council Tax Arrears
Rent arrears
Debts to friends or family
*Depending on the situation we may be able to include these. If we can’t, we may be able to help you budget for them outside of the plan.
Examples of debts that cannot be included*
Child maintenance arrears
Student loans
Secured loan arrears
Court fines
Mortgage arrears
Car financing arrears
(including PCP & HP)
*We may be able to help you budget for these outside of the plan.
If your debts include both types, our advisers will guide you on how best to manage your overall financial situation.
FAQS
FAQ's
What is a Debt Management Plan (DMP)?
A Debt Management Plan, or DMP, is a way to help you pay back money you owe. Instead of paying lots of people separately, you make one payment each month. We then share that money among the people you owe.Who is a DMP suitable for?
A DMP may help if:- You owe money and cannot afford the normal payments
- You have money coming in each month
- You want help to pay things back in a simpler way
Which debts can be included?
A DMP usually includes unsecured debts such as:- credit cards
- personal loans
- store cards
- overdrafts
- payday loans
- mortgages or rent
- secured loans
- council tax
- court fines or child maintenance
- student loans
Can I still use my credit cards during a DMP?
No. If a credit card is in your DMP, you should stop using it. The lender will usually freeze or close it.How does the plan work?
- We talk to you about your money.
- We work out what you can afford.
- We speak to the people you owe.
- You make one monthly payment to us.
- We share the money with your creditors.
- We check your plan regularly.
Is a DMP legally binding?
No. This means it is not a formal legal agreement. But many creditors will still agree to it if the payment is fair.Will interest and charges stop?
Sometimes yes, sometimes no. We will ask your creditors to stop interest and charges, but they do not have to say yes.How much will I pay each month?
You will pay an amount that is based on what you can afford after paying for important things like food, bills, and housing.Will you help me with budgeting?
Yes. We will help you look at your money coming in and going out so your budget is realistic.How long will the plan last?
It depends on:- how much you owe
- how much you can pay each month
- whether interest and charges stop
Will it affect my credit file?
Yes, it probably will. Paying less than normal can affect your credit file and make it harder to borrow money while the plan is running.Will it affect my mortgage?
Your current mortgage should not usually be affected if you keep paying it. But getting a new mortgage or other credit may be harder while you are on the plan.Will creditors still contact me?
Sometimes, especially at the start. We ask them to deal with us, but they may still send letters or statements that they have to send by law. If you get a letter you do not understand, we can help explain it.What happens if my situation changes?
A DMP is flexible. If your money changes, we can review the plan and change your payment if needed.Is a DMP the same as an IVA or bankruptcy?
No. A DMP is different. An IVA and bankruptcy are more formal legal options and can have bigger effects.What fees do you charge?
We charge a fee for setting up and managing your DMP. We will explain the fees clearly before you agree to anything. The fees are included in your monthly payment.Can I cancel the plan?
Yes. You can stop the plan at any time. But if you do, creditors may start adding interest and charges again and may contact you for payment.Is this service regulated?
Yes. Debt Support Service is authorised and regulated by the Financial Conduct Authority, also called the FCA.How might a DMP help me?
A DMP can help by:- making payments easier to manage
- giving you one monthly payment instead of lots
- helping you with budgeting
- making things feel less stressful
Take the first step today
If you’re ready to regain control of your finances, contact Debt Support Service today. Our experienced team will help you understand your options and create a plan that works for you.