Common questions about DMPs
How can I create a budget?
You should contact a debt advice organisation to create a monthly budget to see if you can afford to make payments towards your debts.
Are all DMPs free of charge?
Some companies charge a fee to oversee debt management plans. These fees are usually included in the monthly payment that you make to them. Paying a fee means that less money is going towards your debts each month, which can mean that a fee-charging DMP can take longer to pay off.
We’d always encourage you to choose a fee-free debt advice organisation. This way, all your money is going towards repaying your debts rather than on fees.
Are all debts are included in a DMP?
Unsecured debts will be included in your DMP. This includes things like personal loans, store card debts and overdrafts.
Priority debts, like most household bills, your mortgage or a debt where court action has already been taken, won’t usually be included in a DMP, and you should keep paying these at the agreed amount.
Can my creditors still contact me?
Yes, your creditors can still contact you during your DMP and can continue the debt collection process.
Can I change DMP provider?
Even if your DMP company hasn’t closed down, you should still be able to change to another company, and we recommend doing this if you are paying fees to your DMP provider. If your DMP company has shut down you can switch your DMP to another provider. If this has happened to you, you can read more about what to do if your debt management company has closed down.