Many people struggling with debts in the UK could benefit from a debt management plan. But just what is a debt management plan?
StepChange Debt Charity offers debt management plans completely free with no hidden fees, leaving you more money to pay off your debts.
Debt management plans explained
Also known as a DMP, a debt management plan is where you make reduced monthly payments towards your debts. It is an ideal solution for people struggling to keep up with their contractual debt payments but who still have money available to pay towards their arrears after all essential living expenses.
In most cases the plan is arranged by a third party (eg, a debt help charity like StepChange Debt Charity) and they contact your creditors with a proposed schedule of reduced payments. If the creditors agree to the plan, you make one affordable payment to the third party every month, and they divide it between your creditors on your behalf.
Free debt management and advice
When we arrange a debt management plan, our first priority is make sure you are left with enough money to live on. As a debt charity, we charge no fees – so everything you pay goes towards reducing your debts.
Debt management plans are not suitable for all circumstances, but we can help with all kinds of alternative debt solutions. Through StepChange Debt Remedy, we can assess your situation and recommend the very best solution for your circumstances.
If a debt management plan is right for you, we can deal with your creditors on your behalf. As a reputable charity, creditors usually agree to our plans. We keep you informed every step of the way with a monthly statement showing you how much has been paid towards each debt, and you’ll also have 24-hour online access to manage your plan and view your statements.
As part of our debt management services we review your situation at least once a year in case your circumstances change.
If you think a DMP is right for you, use our online Debt Remedy tool. We can tell you more about what debt management is, how it works and recommend the most appropriate solution to your debt problem.