Debt Management Plan (DMP)
We've helped thousands of people escape the pains of unaffordable debt
✅ One affordable monthly payment
✅ Could stop all interest & charges
✅ Cancel anytime
What is a Debt Management Plan?
A Debt Management Plan (DMP) is an informal agreement between you and your creditors to pay back your debts at a rate you can afford.
Review your income and expenditure to work out what you can realistically afford to repay each month. This reduced monthly repayment amount will be proposed to each of your creditors and if accepted, your debts will be repaid at this rate over an extended period.
Is a Debt Management Plan right for me?
If you’re struggling to make your monthly payments but have a stable enough income to make consistent, smaller repayments over an extended period, then a DMP could be right for you.
When should I consider a DMP?
A DMP could be right for you if you are:
✅ Worrying about money
✅ Struggling to pay your household bills
✅ Concerned about creditor contact
✅ Relying on overdraft's or credit cards
✅ Missing repayments or getting into arrears
Are you eligible for a DMP
Our expert debt advisors will be able to tell you everything you need to know about debt solutions and eligibility criteria.
Click below to see if you qualify 👇
Debt Management Plan pros & cons
DMP Pros
✅ Reduced monthly payments
✅ Creditors may freeze interest & charges
✅ DMP's are not recorded on public registers
✅ You should recieve reduced contact from your creditors
DMP Cons
❌ You are still liable for your full debt
❌ Creditors can still take legal action
❌ No guarantee creditors will accept
❌ Can affect credit file
How to apply for a DMP
If you want to apply for a DMP or find out what other solutions could be available, get in touch and one of our friendly advisors will:
- Review your current debts and financial situation, then give you all the information to make the right choice for you.
- If you decide an DMP is the best option for you, Mums with Debt will help you with the setup process.
- Once set up, we will review your application and send the DMP request to your creditors.
What debts does a DMP cover?
A DMP covers most unsecured debts, which means debts that are not tied to assets (usually your home). These can include:
- Household bills
- Council tax
- Credit cards
- Personal loans
- Overdrafts
- Payday loans
- Buy now, pay later debts
What debts can’t be included in a DMP?
An DMP typically includes most unsecured debts. Any debts that are tied to assets, like your house, will not be covered in an DMP.
- Mortgages
- Debts incurred through fines
- Student loans
- Court fines
- Social fund fines
- Hire purchase agreements
- Child support arrears
Living with a Debt Management Plan
Debt Management Plans get to work almost immediately helping you manage your debt, meaning that once you have considered your budget, you can begin making your new manageable payments right away.
It’s worth noting that creditors can still contact you and may continue to request payments. If your plan is managed by Mums with Debt, you can refer any creditor contact to us, and you won’t need to reply. If payments are not made to creditors (in whole or in part) you can still fall into arrears or have increasing arrears.
It’s also important to remember that a Debt Management Plan will impact your credit score for the time the plan is in place, and 6 years after that.