We aim to make our website as accessible as possible. However if you use a screen reader and require debt advice you may find it easier to phone us instead. Our phone number is 0 8 0 0 1 3 8 1 1 1 1. Freephone (including all mobiles).
couple-laptop

What if something changes during my DMP?

This advice applies to people living in England, Wales, Scotland and Northern Ireland who are on a DMP.

Debt management plans (DMPs) often run for a number of years. Along the way, it is likely things will change at some point for you. It might mean it could be harder to keep to your plan. Or you might have some good luck and be able to settle your debt.

Read our guide to changes that could affect your DMP and what to do next.

Quickly find what you are looking for

  1. What changes could impact my DMP?
  2. Reviewing your budget and your DMP
  3. I need to pay less to my DMP, will it be cancelled?
  4. Will my creditors be annoyed if I make changes to my plan?
  5. My income has increased. Do I need to pay more to my plan?
  6. I will have some extra money coming in soon. What should I do?
  7. Other ways to make the most of more money coming in
  8. How can I let you know about changes to my DMP?

What changes could impact my DMP?

It is normal for things to change while you are on a DMP. These changes could be:

  • Wages going up or down
  • Redundancy or job loss
  • Illness
  • Retirement
  • Starting a family
  • Moving home
  • Starting or ending a relationship
  • Starting or finishing education

Reviewing your budget and your DMP

You need to review your finances at least once a year while you are on a plan. Or when you tell us something is likely to change.

We do this to make sure your DMP is still right for you and you can still afford your DMP payments. It also lets your creditors know how you are doing.

The easiest way to review is through OnlineDMP.

Your DMP can be changed at any time based on your needs. Don't worry, your creditors know that things will change from time to time.

If you don’t have a review, we cannot be sure a DMP is still right for you. We may have to cancel your DMP if you miss reviews regularly. But we will always try our best to contact you before stopping it.

I need to pay less to my DMP, will it be cancelled?

You might find you have less money left over to pay towards your DMP. That is ok. We would not just cancel it without giving you more advice.

Making payments you cannot afford could end up making things worse.

If it looks like you need to make changes to your budget, this is not always a bad thing. It might mean a DMP is no longer right for you. We will help you work out whether to change your DMP or look at a different debt solution.

Will my creditors be annoyed if I make changes to my plan?

Your creditors know we review your DMP and they want us to do this. They understand that DMP payments are based on what you can afford. And they know this might change over time.

If you need to reduce your payments:

Your creditors may want to see a copy of your new budget. We will share this with them so they can see what has changed. It will show them you are paying the most you can afford.

If they do not think your payment is fair, a creditor could:

If anything like this happens, just let us know.

My income has increased. Do I need to pay more to my DMP?

Your added income will be added to your budget.

If you can afford to pay more through your DMP, you may be able to pay off your debts faster.

But you may not be able to pay more through your DMP. We also need to check if your living costs have gone up at the same rate. You may be earning more, but if the weekly shop and bus fare costs more, your budget should show this.

We never ask you to make DMP payments you cannot afford.

Other ways to make the most of more money coming in

While we always look into increasing your DMP payments to help you get debt-free faster, there may be other ways extra income can help you. Maybe you have had a bonus or other one-off payment?

It is always best you contact us so we can talk you through the best options for you.

You could:

Priority debts are:

  • Arrears on council tax, mortgage arrears or utility bills
  • Court debts such as fines or parking tickets

We may have included priority debts in your DMP so they get a share of your monthly payment. Or, we may have told you to carry on paying them outside your DMP. Either way, you could use this extra money to pay them off faster or clear the debt.

It is worth checking if there are any yearly bills you could pay in full. Paying these in one go can often be cheaper than paying monthly.

This could be your home or car insurance.

There is a part of your budget for ‘sundries and emergencies’. This is to cover all the things you cannot plan for. Like a vet bill, or your car breaking down.

It could be wise to open a savings account to keep this money to one side.

If you have a large amount of money, you may be able to make an offer to clear a debt. This is called making a 'full and final settlement offer'. It means you make a one-off payment and the rest of the debt is written off.

We have a team who can help you with this. They can find out if there is a way to settle your debts in a way that is fair for everyone.

If you do not have enough money to do this, you could still make a one-off higher payment to reduce your debts. This will help you pay off what you owe more quickly.

You could do this in two ways:

1. Share out the extra money fairly across all of your creditors

You can do this by paying extra into your DMP, and we will share it out for you. Get in touch with us if you would like to do this.

2. Pay off one or more individual debts

We generally recommend treating all debts fairly. But it might be better for you to do this if one of your creditors:

  • Is adding interest to your debts
  • Has sold the debt to another company who are contacting you
  • Has offered to settle the debt for a reduced payment

Contact us first if you plan to do this so we can look into the pros and cons, and if it is likely to affect you. For example, putting one creditor above another can be a bad idea if you are considering bankruptcy.

You must get the agreed offer in writing. This is the best way to prove it was agreed in case the creditor changes their mind.

I will have some extra money coming in soon. What should I do?

Look into your options now if you are getting money from:

  • Selling a house
  • A friend or family member's will
  • Insurance pay out
  • Other lump sum payment

We based our recommended solution on what was happening to you when we advised you. When you get this money, get in touch so we can advise you again. There may be another solution that suits your new circumstances better.

How can I let you know about changes to my DMP?

Easy, just update your plan in OnlineDMP. If you make big changes online, we may need to follow up with a call.

You can also contact us and talk to our team.