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Managing a DMP

Can I pay a DMP off 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 down gradually over time
  • Try shopping at cheaper supermarkets or check online price comparison sites for deals
  • Consider switching to a cheaper phone contract or a sim only deal

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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 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.

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, Debt Remedy, we can provide free debt advice and recommend the very best solution for your circumstances. 

Helping you become debt free...

“I wish to thank your staff for all the great help they gave me when I was in so much debt.
They were a pillar of support to me.” (Leslie, Essex)

Foundation for Credit Counselling Wade House, Merrion Centre, Leeds, LS2 8NG trading as StepChange Debt Charity and StepChange Debt Charity Scotland. A registered charity no.1016630 and SC046263. It is a limited company registered in England and Wales (company no:2757055). Authorised and regulated by the Financial Conduct Authority.

We link to external websites where they contain relevant information for our visitors. We're not responsible for the content of these websites, or any infringement on your data rights under data protection regulations by any external website provider.

*This is the average rating of our service based on the StepChange reviews on Feefo by DMP and DRO clients three months into their solution.

© StepChange Debt Charity 2019