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Debt management plan (DMP)

Manage your debts with our fee-free DMPs. Pay them off at a rate you can afford by making a single monthly payment.

Find out if a DMP is right for you

   Start, stop and begin again at a time that suits you

What is a debt management plan (DMP?)
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  England, Wales, Scotland and Northern Ireland

DMPs with StepChange

A DMP with StepChange is free and flexible to suit your lifestyle. So you can live comfortably while we take the stress out of dealing with debt.

Since 1993, we have given expert advice to millions of people across the UK. Our advice is personalised and trusted by creditors. We make decisions based on what is best for you and your situation.

No fees

We do not charge any fees for this service. All the money you pay goes toward paying off your debts.

Many debt management companies provide DMPs, but some charge fees. Our DMPs have no set-up charges or monthly fees.

Affordable payments

With a DMP, you enter an agreement to pay back money you owe, based on what you can afford. We will support you from start to finish.

Based on your needs

We work with you to make a budget that meets your needs. If a DMP is right for you, we will help you set up and manage your plan at no extra cost.

We deal with your creditors

We speak with your creditors so you don’t have to. We make sure your creditors know you are on a plan with us and that they will be getting payments from us on your behalf.

Single monthly payment

You make one monthly payment to your DMP, and we will share it out fairly among your creditors.

Is it better to pay for a DMP?

The short answer is… No.

When you pay for a DMP, you do not get any extra benefits or protections. It works just like a free DMP, but you end up paying more each month. This means it takes longer to pay what you owe.

Let’s say your total debt adds up to £15,400.

With a fee charging DMP provider, you may have to pay a set-up fee of up to £700 before you can start paying off your debts.

If your regular monthly payment is £168, a fee charging provider might take up to 49% of this payment in fees. This means almost half of each monthly payment does not go toward paying off your debt.

On a plan like this, it could take up to ten years and six months to pay off your debt. You will have repaid the £15,400 debt but will have also paid your DMP provider up to an extra £6,700 in fees.

When you compare this to a free DMP provider like StepChange, you would pay no fees at all and could pay off the £15,400 debt in seven years and seven months.

Benefits of a DMP

  • A StepChange DMP is free. We do not ask for any extra money for your plan, so all the money you pay goes to your debts
  • A DMP is flexible. Your payment amount can change as your situation changes, so it will always be affordable
  • We do the work for you. All you have to do is send us one monthly payment
  • Creditors might stop interest and charges. They do not have to do this, but many do
  • We will help you make a fair budget that works for you. It is important to us that you are covering important bills while dealing with your debt

Risks of a DMP

  • Your credit file will be affected. It is likely you will be paying less than what you agreed with your creditors, which can result in defaults
  • Your creditors can still contact you. They may ask you to pay more than what you are paying through your DMP
  • Your creditors can take further action. A DMP does not protect you from county court judgments (CCJs) and other enforcement actions

Ready to find out if a DMP is right for you?

Use our online debt advice service to find out what options you have for dealing with your debt. Start, pause and pick up again in your own time.

Start online debt advice now

There is no impact on your credit score

Still not sure? Here is what some of our DMP clients had to say…

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Katelyn on Feefo says:

"Amazing. Thank you! Highly recommend looking at StepChange for anyone worried about their debt and putting it off like I did. Very professional and helpful and easy to use. I’m currently on a DMP and even when I think I’ll struggle with a payment for it, StepChange are so helpful and understanding."

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Michelle on Feefo says:

"Great service. I found the online process really easy to complete and the option to speak with someone was appreciated. It is easy to check your account and the status of payments as well as make any changes. I would recommend StepChange to friends and family."

We have helped thousands of people who have left reviews just like these. Read more of our five-star DMP reviews.

How can I find out if a DMP is right for me?

  1. To find out if a DMP is right for you, you will need to start by using our online debt advice tool
  2. We need to learn more about you to give you advice. Through our online tool, we will ask you for details about yourself and your situation. This includes basic information about you, as well as information about your income, spending and debts. This can be a long process, but you can pause and come back at any time
  3. From the information you gave us, we will give you options on the best ways to deal with your debt. Make sure you read this through before making your choice. You may even be able to apply for Breathing Space. This will give you a break from having to worry about your debts while you get things sorted
  4. If a DMP is right for you and you choose to go ahead with it, we will work together to get your plan set up. You will need to sign a DMP agreement, provide proof of income and some information about your debts. At this stage you will also need to decide on what payment method works best for you
  5. Once we have set up your DMP, keep your details up to date and we will sort out the payments for you
  6. Don’t forget, we are here to support you through the full term of your DMP. You can contact us at any time if you need to make changes to your DMP, talk about payments or anything else in-between

What people ask us about DMPs

The payments you will make through your DMP are smaller than the amounts you first agreed to with the people you owe money to. So your DMP payments will be recorded as ‘partial payments’ on your credit file.

If you miss a payment your creditors can report it on your credit file. When you continue to miss payments, you will be at risk of your accounts ‘defaulting’. This will also be shown on your credit file.

These issues may affect your ability to get credit in the future. But if you have already missed some payments, your credit file will already be affected.

Read more about how a DMP affects your credit score here.

Your single monthly DMP payment to us helps to repay your less important, or non-priority debts. It can also help you repay any priority arrears if you have them.

If you are behind with your important payments such as utility bills, rent or mortgage, and have arrears, we can add those to your DMP and include them in your monthly payment. This will help you manage important payments better.

Regular bill payments are not included in your DMP, only the arrears.

Learn more about how to get a DMP.

Yes, you can.

The first step to switching your DMP is for us to learn more about your debts and your household budget so that we can recommend the right debt solution for you.

Several debt management firms have closed due to not meeting the required standards set by the Financial Conduct Authority (FCA). If you have been affected by these closures, you can switch to us.

No, they are quite different. Debt consolidation involves taking out a loan to repay all unsecured debts you may have.

A debt management plan does not involve taking further credit. Instead, new payment terms are agreed with your creditors, based on what you can afford to pay. Use our free, confidential online debt advice tool to see if a DMP is right for you.

They are both flexible solutions to help you repay what you owe. But there are some differences.

A debt management plan (DMP):

  • Is available in England, Wales, Scotland and Northern Ireland
  • Is an informal agreement to repay debts at a reduced rate
  • Does not protect you from enforcement action
  • Does not stop creditors from adding interest and charges – but we do ask them to consider it

A debt payment programme (DPP):

  • Is available in Scotland only
  • Is a legally binding agreement to repay debts at a reduced rate
  • Protects you against enforcement action
  • Forces creditors to stop interest and charges for the duration of your DPP

Find out more about what debt solutions are available in Scotland.

Yes. By including all your debts in your DMP you are showing your creditors that you are treating them fairly.

When you pay debts outside of your DMP, you risk your creditors thinking you are showing favour to one creditor. This means they will be less likely to accept your payment proposals to them.

Most creditors will accept your offer of a reduced payment. They will have seen your budget showing how much money you have left over after you have paid your essential living costs.

The amount they receive depends on:

  • The amount left to pay on the debt
  • The amount you agreed to pay when you took out the debt

Even creditors who reject the payment proposals we send them cannot reject the payments we send on your behalf. So, we pay them through your DMP anyway.

Once your DMP is set up, you will be able to track the payments we have sent to them through OnlineDMP. You will get a new statement every month, so you will be able to see your debt balances going down.

On OnlineDMP, you can also update details of your debts and review your plan.

Read our DMP guides

You need to know how debt management plans work and how they can affect you before you go ahead. Our DMP guide section has practical advice about the whole process:

What is a DMP?

Find out how they work, how they compare to other solutions and read our frequently asked questions.

How do I get a DMP?

Find out how to set up a DMP and how DMP companies work.

How does a DMP affect me?

Find out about DMPs and your credit score, home and holidays.

Managing a DMP

Find out how you deal with your creditors, saving money and if you can pay off a DMP early.

Worried about money?

Use our online tool to get free debt advice tailored to your situation.

Get help now >

Debt happens. We deal with it.

We have helped millions of people since 1993.

Find out how.

"The best debt support I’ve had."

"I’ve always found StepChange really helpful and supportive. They’re never judgmental on the phone when you have issues and it’s clear their only aim is to support you with your debt. They never make the debt seem like the most important thing and compared to many other debt agencies, they take no fees and expect nothing from you."

Jade, Feefo Review

Best Financial Support Provider: Consumer Credit Awards 2021
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While we hold your money, it’s covered by the Financial Services Compensation Scheme, which can pay compensation if we’re unable to meet our financial obligations. You can find out more on the FSCS website, www.fscs.org.uk.