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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.

Is a DMP right for me?

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

What is a debt management plan?

A debt management plan is an agreement to pay back money you owe, based on what you can afford.

You will make payments for your plan to pay back what you owe. We don't ask for any extra money for your plan. The amount you need to pay is based on all the debts in your DMP.

We will 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 it. There is no cost to you.

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

Benefits of a DMP

  • You pay us once a month, and we pay your creditors for you 
  • We don't ask for any extra money for your plan, so all the money you pay goes to repaying your debts
  • Interest and charges on your debts are often stopped
  • Payments to your less important debts will be reduced. This makes it easier to pay for your essential living costs

Risks of a DMP

  • People you owe money to might still want payments, but you only pay what you can afford
  • People you owe money to might still take further action against you to recover the debt
  • You will be making reduced payments to your debts, so this will affect your credit file
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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. "

Get help like Katelyn

How to apply for a DMP

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The first thing you need to do is find out if a DMP is right for you. Use our online debt help tool or give us a call

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If a DMP is right for you, we will explain what you need to do next and support you as you set up your debt management plan

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Once we have everything we need from you, we will start making payments to the people you owe money to through your DMP

You should always get free and impartial advice before going ahead with any debt solution. To find out more about you, when we advise you we ask questions like:

  • How much money you owe and who you owe money to
  • What types of debts you have
  • How much you can pay towards your debts
  • Whether your circumstances could improve in the future

A DMP would not be right for you if you would find it hard to make payments towards your debts. And we would also look at whether you are able to pay back what you owe in a reasonable amount of time.

Ready to find out if a debt management plan is right for you?

The payments you will make through your DMP are smaller than the amounts you first agreed to with the people you owe money to. 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. 

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. 

Learn more about how to get a DMP.

Yes, you can.

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.

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.

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

A debt management plan doesn't 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.

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:

Debt management plan guides

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"StepChange = stress relief"

"StepChange helped me a lot...every month I used to stress because I knew I would have nothing left over to my name. Now I only give the amount I can really afford to my creditors. BIG THANKS TO STEPCHANGE."

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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.