Debt management plan (DMP)
A debt management plan is an informal agreement to repay your unsecured debts in affordable monthly amounts, usually arranged through a debt adviser.
Also known as: DMP, DMPs, debt management plan
You make one monthly payment based on what you can afford after essential costs, and the provider shares it among your creditors. Creditors are not obliged to accept a plan or freeze interest, but many do, particularly when it is arranged through a recognised charity such as StepChange or PayPlan.
A DMP is flexible and not a legal process, but it can last many years, and it is recorded on your credit file. Fee-charging companies exist, so choose a free provider where possible.
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7 min readReadThis page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised adviser before making important decisions about your money.