Debt Management Plan (DMP)
A Debt Management Plan (DMP) is a flexible arrangement between you and the companies you owe money to, managed by a third-party provider, like PayPlan.
A DMP allows you to make one monthly payment to repay what you owe, set at an affordable level based on your budget and circumstances.
How does a DMP work with us?
Before setting up a plan, we’ll help you put together a budget that shows how much you can afford to pay to your debts each month after all your priority payments and living expenses have been covered.
You can learn more about how your DMP payment is calculated and what’s taken into account. here.
If a DMP is an option available to you and you choose to go ahead with us, we’ll contact your creditors to explain your situation and let them know the amount you’ll be paying them going forward.
One simple monthly payment
- You’ll make one affordable monthly payment to us, which we’ll distribute to the companies you owe money to on your behalf.
We handle creditor communication
- We’ll speak to the companies you owe money to, managing your monthly payments to them and requesting they freeze further interest and charges.
No set-up or management fees
- We don’t charge set-up and management fees, meaning every penny you pay goes directly towards your debts.
Annual check-ins
- Every year, we’ll check in with you to make sure your payment is still affordable and that a DMP is still the right solution for you.
Am I eligible for a DMP?
A DMP may be a suitable option for you if:
- You have a regular income: This includes wages, benefits or pension income.
- You owe money to multiple creditors: Instead of making separate payments, you’ll make one monthly payment to cover all your debts.
- You don’t want your name to appear on a public register: As this is an informal arrangement, you can keep your arrangement private if you wish.
Note: A DMP is available nationwide, and we can also look to assist clients who are now residing abroad and have debts from the UK.
Get advice nowWhat are the pros and cons of a DMP?
Benefits of a DMP with us
- One affordable monthly payment – We’ll work with your budget to create a realistic payment plan that fits your financial situation and is sustainable long-term. You only have to make one payment to us rather than individual payments for all the accounts you owe, simplifying the process of paying back your debts.
- Free plan – There are no hidden fees – our DMPs are 100% free. Other third-party organisations offer DMPs, but they may charge, so make sure you look into that before committing.
- Possibility to freeze interest and charges – While we can’t guarantee it in every case, we’ll negotiate with your creditors to try and stop further interest and charges from being added to your debts. This can help you pay off your balance faster.
Things to consider
- Your DMP will only be completed once all your debts (including interest and charges) are paid off.
- Since a DMP is informal, creditors can still take legal action if they choose. It’s not common, but if this happens, let us know so we can support you.
- Your credit rating will be affected because you’re not maintaining the original repayments.
Discover more about the pros and cons of a DMP. We’re here to guide you through your options and suggest the best solution for your needs.
What debts can be included in a DMP?
There’s no limit to how much debt or how many accounts you can include in a DMP, and it covers most unsecured debts, like:
- Personal loans
- Overdrafts
- Credit cards
- Catalogues
- Water bills
DMPs don’t include priority debts. These are debts that have been secured property or other assets, as well as utility bills or council tax. They will need to be paid outside of the plan, and we’ll help you manage them in your budget.
Click here for a complete list of debts that can and can’t be included in a DMP.
Why Choose Us?
- 100,000+ people received free, confidential debt advice last year
- We don’t charge any fees for setting up or managing your DMP, so 100% of the money you pay goes towards repaying your debts
Don’t just take our word for it
We’ve helped thousands of people become debt-free. Read real reviews from people like you who’ve trusted us to help them find a solution.
FAQs
To help you understand more about our DMPs, we’ve answered some of our commonly asked questions.
Let’s make life more affordable
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Excellent, professional, friendly and empathetic service. PayPlan have given us our lives back!
Sandra Daly
Excellent, professional, friendly and empathetic service. PayPlan have given us our lives back!
Sandra Daly
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