Tips on setting up your debt management plan (DMP)

You might find it helpful to follow this guide and gather everything you need before setting up your plan. We recommend doing this because:

• You will be prepared to enter any details needed to set up your plan
• It saves you time
• You are more likely to get your plan activated without delays

Quickly find what you are looking for

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• Proof of income
• Debts
• Agreement
• Setting up payments

Before you get started

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We will not be able to manage your DMP if you are self-employed.

You are considered self-employed if all or some of the money you make comes from work you do yourself. This could include:

• Running a business
• Renting out a property
• Delivering food
• Selling items online

If you are self-employed, please visit Business Debt Line (BDL) for support.

Checking your income

Firstly, we need to check your income. We do this to make sure you can afford the payments you will make to your DMP.

You will need to upload a photo, scan or screenshot of a document such as your wage slip or benefits letter. We will use this as proof of what you receive. Before you upload the image check:

• The document is shown in full in the image. We cannot use images that only show parts of a document
• All the text in the image is readable
• Your name is in the image
• The date of the document is shown in the image and is less than three months old
• The amount you received is in the image. This needs to match what you told us when you got debt advice

If you receive two or more types of income, we need to see proof for each.

Guidance for Universal Credit

Your budget:

A common mistake we see is that people split out their Universal Credit payments into different categories. But you must keep the full amount under Universal Credit in your budget.

Don't worry if you have split your Universal Credit out in your budget, you can go back and edit this.

Debts:

You must add any money you owe Universal Credit to your debts list.

Proof of income:

When upload proof of your Universal Credit, please include the full statement showing the breakdown and deductions.

What happens if my income does not match my budget figure?

We understand that income can sometimes vary, and that there are many reasons this can happen.

• You earned more due to overtime
• You earned less due to sickness
• You received a bonus or commission

It is important to be honest if the amounts do not match. We may need to update your budget if you get regular overtime, for example. This is not a bad thing, it just means you would be able to pay your debt off at a faster rate.

Please leave a note explaining why the amount does not match. You can do this by:

• Answering the required question in the online activation portal, or
• Leaving a written note on the paperwork you have returned

What do I do if my income varies?

If your income changes each time you get paid, you will need to upload three of your most recent wage slips.

Where can I find my reference numbers and account numbers?

The people you owe will use reference numbers or account numbers to identify you. Reference numbers are commonly used for catalogue accounts, and account numbers are often used for debts with banks. They will look different but work in the same way.

Our online system will prompt you on the type of reference number we need if you are unsure what to look for.

There are a few ways to find the account or reference numbers you will need:

• Online accounts
• Statements
• Credit agreements
• Bank statements
• Your Breathing Space application (only if you had Breathing Space)

It is important we have the right information about these accounts.

• If you cannot find some of your account numbers, contact your creditors to ask for them
• If you provide a wrong account number, it will delay the start date of your DMP
• Make sure you double check all your account numbers

Debts sold to debt collection agencies

Some of the people you owe might sell your account to debt collection agencies (DCAs). They will usually let you know by letter or email if your debt has been sold.

When a DCA buys your debt, they might change your account number. You will usually get an email or letter from the DCA once they have your account. It should let you know:

• Your old account number with the original creditor
• Your new account number with the DCA

If you think your debt might have been sold to a DCA but you cannot find the letter from them, you can contact your original creditor to ask them who is managing the debt.

They should be able to give you contact details.

You should always read your agreement before signing it.

Your signed DMP agreement lets us know that you understand:

• What is expected of StepChange, and
• What is expected of you

So that we can get your DMP set up quickly, make sure that:

• Your name is entered correctly
• Your agreement is clearly signed and dated
• You have read and agreed each of the terms, if using your online account

We cannot take DMP payments from a bank account with an attached overdraft that will be included in your plan. Find out what to do if your bank account has an overdraft.

Paying by Direct Debit

If you want to make payments by Direct Debit, you will need to complete a Direct Debit mandate.

Many DMP clients prefer to pay by Direct Debit because:

• Payments are taken automatically – you do not have to do anything once it is set up
• Payments are taken on the same day every month

So that we can get your Direct Debit set up smoothly, make sure that you enter your details correctly. We will need:

• Your name, as shown on your bank account
• Your 6-digit sort code (for example, 12-34-56)
• Your 8-digit account number (for example, 12345678)

We will not be able to set up your Direct Debit if:

• Your bank account has an overdraft which is included in your list of debts
• The details you entered are incorrect – always double check
• You want to set up a Direct Debit from another person's bank account

My bank account has an overdraft - what should I do?

We cannot take payments from a bank account with an overdraft that is included in your DMP.

If this is your only bank account, we recommend opening a basic bank account for all your important spending. Read more about basic bank accounts.

Paying by standing order

If paying by Direct Debit does not work for you, you can pay by standing order instead. This lets you pay on a date of your choice.

You can set up a standing order in a few ways:

• On your banking app
• By online banking
• By calling your bank

When it is time to set up your standing order, we will give you our bank details and information on what to include in the payment reference. This will happen when:

• You have signed and returned your agreement
• Your income has been confirmed
• You have given all the needed information about the debts included in your DMP
• Your plan is ready to start

We are here to help

Following this guide will help you make sure you submit all information correctly on the first try. Submitting wrong information will cause delays, and we want to make sure you start your DMP as soon as possible.

While you wait for us to set things up for you, please take a look at what you can do to help your DMP run smoothly.

We know that budgets can often change, and that is no problem. We can look at it again with you to make sure your DMP is still comfortable to manage.

If you have any questions or need further help, contact our activations team. We are always happy to help.