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TPPs are available throughout the UK.

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Token payment plan (TPP)

With our fee-free TPPs you can get some breathing space to deal with your finances while making reduced payments.

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Sometimes your circumstances mean it can be difficult to make any sort of payment towards your debts. A token payment plan (TPP) could be the temporary support you need to get your situation back on track. With a TPP you pay £1 a month to each of your creditors until your situation improves enough so you can pay them more.

Other debt management companies offer token payment plans, but may charge a fee. Our TPPs have no set-up charges or monthly fees.

Is a TPP suitable for me?

A TPP is a temporary plan. We can only set one up if your income is only just covering the payments towards your household bills (so you've got nothing left over at the end of each month) and your situation is going to improve within the next 12 months.

We may also recommend a TPP in exceptional circumstances, even when your situation isn’t likely to improve. Your situation could be improving because:

  • You have a payment that is due to finish, which will free up money in your budget. This could be paying off arrears on your rent or mortgage, or finishing a hire purchase agreement
  • Your situation will change, for example if you’re selling your home or you’ll return to work after maternity leave

Benefits of a TPP

  • You make one monthly payment to us and we send this to your creditors. We won't charge you a fee for doing this
  • You’ll only be asked to pay £1 a month for each of the debts you have. For example, if you have six debts you’ll pay £6
  • If you've fallen behind with any of your priority household bills, we'll help you deal with these as part of your TPP

Risks of a TPP

  • We can only offer a TPP if your situation is likely to improve within the next 12 months
  • We’ll only set up a TPP if you don’t have enough money available to look at other debt solutions, like a debt management plan
  • A TPP is not a long term solution. It can only be offered to you if your situation is going to improve, or in exceptional circumstances

Other things to consider with TPPs

Your creditors don’t have to agree to reduced payments through a TPP, but even if they don't we'll still make your payments to them.

There will also be a period of time while the plan is set up before we make payments on your behalf.

Making reduced payments to your creditors also increases the possibility of falling into further arrears and your debt total could increase, which is why a TPP is not a long-term debt solution.

Making reduced payments will affect your credit rating and you'll find it more difficult to get further credit.

Common TPP questions

This depends on your circumstances. A TPP can help take the stress out of dealing with your creditors and gives you breathing space while you get back on your feet.

Once your situation has improved we’ll review your budget and talk to you about the other options available to help you deal with your debts.

If you've fallen behind with your priority household bills (such as gas, electricity or mortgage) and built up arrears then we can add these onto your TPP so that you can pay them something towards your arrears in your monthly TPP payment.

This will help reduce the pressure you're under as you'll just make one payment to us and we'll help you deal with your priority household bills as well as your unsecured debts.

When your situation improves you can increase the payment you're making to get your household bills up to date as quickly as possible.

A TPP isn’t a long term debt solution. If you can only afford £1 a month to your unsecured debts and this looks like a long-term situation, we will advise you on more suitable debt solutions.

What next? Find out if a TPP is right for you

  1. The first step is to put a budget together so we can see what's best for you. If you haven't already received advice from us, you can do this online using our online debt advice tool, or by calling our free helpline and speaking to one of our advisors.
  2. If you fit the criteria for a TPP we can set it up and contact your creditors.
  3. When your situation is due to change we’ll contact you to review your budget and discuss your long-term debt solutions.

Worried about debt?

Use our free online debt advice tool to get tailored advice and debt solutions in around 20 minutes.

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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.

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*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 2018