A Debt Management Plan
allows you to repay your debts at a rate you can afford
How does it work?
A Debt Management Plan (DMP) is an informal agreement between you and your creditors that allows you to repay your debts at a rate you can afford – and become debt-free in your own time.
A Debt Management Plan is set up and managed by a DMP provider, who helps you work out an affordable regular payment, deals with your creditors and distributes the money you pay back each month. Some DMP providers charge a fee for their services, but there are several free providers out there too.
You can use a DMP to pay off non-priority debts, such as credit or store cards, overdrafts and personal loans. However, it won’t cover things like court fines, council tax, or your rent or mortgage. And it may show up on your credit record, making it harder for you to get credit in the future.
It’s also worth noting that your creditors may not freeze the interest and charges on your debts, so the amount you owe may take longer to clear than you’d expect.
To make sure you’re aware of all the implications, it’s a good idea to get advice from a free, independent and expert service like ours.
Get in touch with our team today by calling 0808 164 2480 or filling in our short assessment form.
What to expect
- We’ll use the information you’ve given us on the phone or in your assessment form to establish the nature and urgency of your debt.
- We’ll book you in for a face-to-face appointment at your nearest centre – or a telephone advice session if required – so we can give you a detailed analysis of the help available to you.
- We’ll discuss your options and talk through the pros and cons of each.
- We’ll establish the best possible solution and help you to resolve your debt – whether that’s by means of advocacy, representation or negotiation on your behalf, or by helping you write letters and supporting you throughout the process.
Every year, we help thousands of people to become debt-free.
Debt Free London is a partnership of 26 debt charities led by Toynbee Hall, which provides free, trustworthy advice sessions across London. Our service is funded by the Single Finance Guidance Body (previously Money Advice Service) and we’re authorised and regulated by the Financial Conduct Authority.