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).
i This solution is available throughout the UK.

Managing a DMP

Can I pay off my debt management plan early?

As debt management plans (DMP) are quite flexible, you may find that you’re able to pay off a DMP early by increasing monthly payments or paying a lump sum.

Your DMP payment is worked out once your priority household bills, arrears and other living costs have been accounted for in your personal budget. The money left over each month after these expenses are accounted for will then become your DMP payment.

Whether you can pay your DMP off early or not often depends on how much you have left over each month, and if it’s possible to increase that amount. Depending on your circumstances, making full and final settlements on your debts may also be an option. 

Can I increase my monthly DMP payments?

One way to bring the term of your DMP down is to increase your monthly payments. If you have an increase in income, then your DMP provider would need to review your budget. Once this is done, it’s possible that your DMP payment will increase due to an increased surplus. 

Most debt management companies that offer DMPs will charge a fee for this service. However as a charity, we offer DMPs for free.

If your income isn't likely to increase, there may still be ways to increase your monthly DMP payments. While your DMP provider should always prioritise your living costs, you could free up some more money by reducing your spending.

Take a look at your budget and see if there are any areas of spending you could reduce. For example:

  • If you smoke, try reducing your smoking gradually over time
  • Try shopping at cheaper supermarkets
  • Check online price comparison sites for deals
  • Consider switching to a cheaper phone contract or a sim only deal
  • Consider switching utility provider, and check if you're eligible for a social tariff
dad and daughter cooking

Considering a DMP?

We can help with free, impartial debt advice online now.

Get debt help

Could I settle a DMP early with a lump sum?

If you receive a lump sum, such as a windfall or redundancy payment, you should let your DMP provider know as soon as possible. After assessing your immediate needs and circumstances they may recommend one of the following options:

  • Pay the money into the DMP to spread evenly among your debts. Doing this will reduce the term of your DMP
  • When possible repay your creditors in full
  • Approach your creditors with partial settlement offers based on the money you have available, requesting that the remainder of the debt is written off if the lump sum is less than the debt balance owed

Creditors are not obliged to agree to a partial settlement offer. With that said, there’s no harm in approaching them and asking the question to see if any discounts are available.

You could also sell assets to pay off your debts. These include things such as vehicles, antiques and valuable goods such as jewellery.

What if I had a windfall or won the lottery during my DMP?

If you won the lottery during your DMP, you would be expected to repay all of your debt in full.

If you won a couple of thousand pounds, there’s a chance you would be expected that you pay some of this into the plan. This would depend on things such as how much debt you still owe and how this lines up with the amount of money you’ve won.

On a positive note, it does mean that your plan would end quicker than you first expected. You may even be in a good position to make full and final settlement offers on your debts.

Free DMP advice

Debt management plans are not suitable for all circumstances, but we can help with all kinds of alternative debt solutions. Through our online debt advice tool we can provide free debt advice and recommend the best solution for your circumstances.