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).
StepChange Debt Charity logo
Go
i This solution is available throughout the UK.

How does a DMP affect me?

How does a DMP affect me?

A debt management plan (DMP) can affect you in several ways. As with any debt solution, there are number of benefits and risks you should consider before entering into a DMP.

If you’re on a debt management plan, the payment you make each month will usually be less than the minimum amount you initially agreed to when you took the debt out. A DMP could affect your credit rating, even if your creditors are happy to accept the DMP. However, once each debt is cleared, they will eventually drop off your credit file.

Once you’re on a DMP, most creditors will agree to stop interest and charges as a gesture of goodwill. However, some may not, and they’re not obligated to stop charging fees. 

Your creditors can still take further action once you’re on a DMP. For example, they can pass your debt to a collection agency or start court action, and they may continue to contact you.

Creditors can also refuse the DMP offer, and add interest or changes to your debt. Because you’re taking longer to repay the debt, this may increase the total debt you owe.

Considering a DMP?

Try Debt Remedy

Free online debt advice in 20 mins

Get debt help

If a creditor ‘refuses’ a DMP payment, they still have to let it be processed. However, a DMP provider would usually recommend that you continue to make your DMP payments as normal.

DMPs can be changed to suit your situation if your income or living costs change. You’re also not tied into the agreement, so you can leave the DMP agreement at any time, should you want to. 

Can I get a DMP?

A DMP isn’t suitable for everyone, and we recommend that you get some professional and impartial advice before setting one up. A debt advice organisation would look at your budget in order to determine if a DMP is the best solution for you.

We're rated

4.8 out of 5
Read reviews of StepChange » Av. ratings for our service by DMP/DRO clients after 3 months.

Not all debts can be paid through a DMP. Most debt types can be included, such as credit cards, personal loans, overdrafts, gas and electric arrears, catalogues, cancelled phone contracts and payday loans. However, secured debts, like mortgage arrears or secured loans, and some other debts (including student loans, child support, county court judgments and fines) will still have to be paid separately to a DMP.

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.

*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 2017