Debt management plan (DMP)
With a StepChange Debt Charity DMP we can help you repay your debts by making one affordable payment each month. A DMP is flexible, so the amount you pay can change depending on your circumstances.
Key DMP facts:
- Our DMPs are completely free. Every penny you send us goes towards paying off your debts.
- In most cases your creditors will stop interest and charges.
- We've helped people repay millions of pounds of debt on DMPs since 1993.
Find out more about a DMP
Individual voluntary arrangement (IVA)
An IVA is a legally-binding agreement which can help you pay back a reduced amount to settle your debts, usually over five or six years. At the end of this time your remaining debt is written off.
Key IVA facts:
- You make one affordable payment to us each month and we send this to your creditors.
- Our IVA fees are included in your monthly payment.
- Your creditors can no longer contact you.
Find our more about our IVAs
Debt relief order (DRO)
A DRO might be right for you if you owe less than £15,000, have a low income and very few assets. If we advise that a DRO is the best solution for you, StepChange Debt Charity can help you apply.
Key DRO facts:
- You don't pay anything towards your debts for 12 months, after which your debts will be written off.
- You pay a one-off fee to the Insolvency Service.
- We can help and support you through the application process.
Find out more about a DRO
Bankruptcy is a way of managing serious debt, particularly if you are unable to pay back the money you owe in a reasonable amount of time.
Key bankruptcy facts:
- Bankruptcy gives you a fresh start. All of your unsecured debts are written off.
- You pay a one-off bankruptcy fee to the county court.
- Bankruptcy will normally last for 12 months and will appear on your credit file for 6 years.
Find out more about bankruptcy
If you are a homeowner aged 55 or over, you could consider using equity release to unlock money from your home while you still live there. Equity release could allow you to release a tax-free cash lump sum for any purpose e.g. debt consolidation, home improvements or to supplement your income.
How StepChange Equity Release can help:
- Free, unbiased, whole-of-market advice.
- Qualified equity release advisors with in-depth knowledge and experience.
- Impartial advice via salaried advisers. No sales targets, bonuses or commission.
- Telephone-based advice so no intrusive home visits.
Find out more about equity release
Debt Arrangement Scheme (DAS)
Under the DAS you can set up a debt payment programme (DPP) to help you repay your debts over a realistic amount of time. To apply for a DPP you need to live in Scotland.
Key DPP facts:
- Your interest and charges are frozen and your creditors can’t take any further action while your DPP is in place.
- You make one affordable payment each week or month.
- We’ll set up and manage your DPP completely free of charge.
Find out more about a DPP under the Debt Arrangement Scheme (DAS)