Debts of £6,000 or more, and struggling to make payments? Get in touch today!

or

call The Money Group on 08000 77 4000

Debt Management Plan

A Debt Management Plan, or DMP, is an informal agreement between you and your unsecured creditors to pay back non-priority debts, reducing your monthly payments to a single affordable amount each month. There are both fee-paying and free-fee debt management plans available.

Customers can get free debt counselling, debt adjusting and providing of credit information services from the Money Advice Service – an organisation set up by the Government to offer free and impartial advice to those in debt. For more information from the Money Advice Service click here www.moneyadviceservice.org.uk
You can find. Government guidance on dealing with your creditors here.

Start planning a debt free future today!

What is a DMP – Debt Management Plan?

A Debt Management Plan, or DMP, is an informal agreement between you and your unsecured creditors to pay back non-priority debts, reducing your monthly payments to a single affordable amount each month.

There are both fee-paying and free-fee debt management plans available.

If you have a higher amount of debt a DMP may not be the right solution for you, as it could take you a lot longer to pay back your debts.

A DMP could be a good debt solution for you if you have some money left over each month after paying for food, accommodation and utility bills. The DMP provider will work with you to see what level you can afford to pay and this will be divided among the creditors that you owe money to.

Please be aware that lenders are not obliged to accept less than contractual, payments or to freeze interest and charges. This may result in an increase in the total, amount repayable and may affect your credit rating

Advantages

  • Flexible – A plan can be agreed for any level of debt.
  • Security – The DMP does not include your assets.
  • One Monthly Payment – One affordable monthly payment to your creditors

Disadvantages

  • Not Legally Binding – The DMP agreement is not legally binding.
  • Interest & Charges – Creditors may continue to add interest and charges.
  • Legal Proceedings – Once the DMP has been assigned, creditors may continue with legal proceedings.
  • With a fee paying DMP there may be an arrangement fee of 50% of your disposable income for the first 6 months subject to a maximum of £1,400 and then a flat fee of £38

Other debt options

Debt plans

Find out More

Start reducing your debt repayments and regain control...

Do I Qualify?
Check if you Qualify?