Available across the UK
Debt Management Plans
A Debt Management Plan (DMP) is an informal agreement between you and the organisations you owe. You make one regular payment, which is shared between your creditors. It is not legally binding, so creditors are not obliged to accept it.
How it works
- Your income, essential spending and debts are reviewed to work out an affordable monthly payment.
- A DMP provider (or you yourself) contacts your creditors to propose reduced payments.
- Creditors may agree to freeze or reduce interest and charges, but they do not have to.
- You pay until the debts are repaid in full, which can take longer than your original agreements.
Things to consider
- Some providers offer DMPs free of charge, including debt charities. Others charge fees, which can mean debts take longer to clear.
- DMPs usually only cover unsecured debts such as credit cards, loans and overdrafts — not priority debts like council tax, rent or mortgage arrears.
- You can usually leave a DMP at any time.
Risks and consequences
- Creditors may still contact you or take action, as the plan is not legally binding.
- Missed or reduced payments are likely to be recorded on your credit file.
- Interest and charges may continue to be added unless creditors agree otherwise.
This page is general information, not advice. Money Surgeon does not recommend specific solutions. Whether any option is suitable depends on your full circumstances — speak to a qualified adviser before making decisions.