Debt Management Plan
Debt Management Plans (DMP) are informal agreements between you and your creditors to lower your monthly repayments. This can make your debts easier to manage and take some pressure off your finances.
- How an DMP Works?
- DMP Pros & Cons
- Is a DMP Right for You?
You can visit the Money Helper website to find out more about managing your money and to get free advice, they are an independent service set up to help people manage their money. Further Information – The Insolvency Service has produced a Guide for people struggling with debt in the United Kingdom.
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What is a Debt Management Plan?
A Debt Management Plan is an informal arrangement between you and your creditors to repay your debts at a rate you can afford. Key features include:
- A single monthly payment that gets distributed among your creditors
- Reduced monthly payments based on what you can realistically afford
- Flexibility to adjust payments if your circumstances change
- Professional support from a debt management company or charity
What Debts Can Be Included in a Debt Management Plan?
Debt management plans usually cover unsecured debts. These are debts not linked to an asset such as a home or car.
Common debts included are:
Credit cards and store cards
Personal loans
Overdrafts
Catalogue debts
Some council tax arrears
Priority debts, such as rent, mortgage, or court fines, are usually dealt with separately. Enforcement and recovery processes are administered through HM Courts and Tribunals Service, which is why prioritising certain debts matters.
Is a DMP Right for You?
- You might be eligible if:
- You have regular income to make monthly payments
- You’re struggling with unsecured debts like credit cards and personal loans
- You can afford to make regular payments after paying essential bills.
- You need professional support to manage your creditors
DMPs Usually Won't Work If:
- You have mainly priority debts (mortgage, rent, council tax, utilities)
- You have no regular income
- You can’t afford any monthly payments
- Your debts are primarily secured loans
- You’re facing legal action from creditors
Debt Management Plan Pros And Cons
DMP Pros:
- Single affordable monthly payment
- Professional support and guidance
- No legal process involved
- Creditors may freeze interest and charges
- Stops most creditor contact
- More flexible than formal solutions
- No impact on your job or professional status
- Can be cancelled at any time
- Helps you develop better money management skills
DMP Cons:
- Not legally binding – creditors can still take action
- Interest and charges may continue
- Takes longer to repay debts
- Affects your credit rating
- There is no obligation for any creditor to agree to the plan.
- Some fees may apply (if using a commercial provider)
What Our Clients Say About Us
We Can Help You Manage Most Kinds of Unsecured Debt, Including:
We Handle All Bailiffs
How we helped Holly
Pressure Has Been Taken Off Me
I felt a lot of pressure had been taken off me once I had spoken to them. They kept me upto date every step of the way during my Iva set up and I was able to call anytime I needed advice
- £28,409 Debt Amount
- £104 Monthly Payment
- 79% Debt Write off
Holly
What Our Clients Say About Us
"They really helped me get out of a massive hole of debt I was falling worse into I can't thank them enough for helping me I feel so much beta and can sleep now without worrying what's going to happen"
Sharon
“ I felt a lot of pressure had been taken off me once I had spoken to them. They kept me upto date every step of the way during my Iva set up and I was able to call anytime I needed advice.”
Holly
“Excellent service and the most understanding and polite staff. Very straight forward and easy to understand and clear problem solving. Private and confidential discussions with confidence. Thank you to all.”
Michelle
Ready to Take the First Step?
Get confidential support to stop the stress and take back control of your finances.
Email us – Enquiries@slwb.co.uk
You can visit the Money Helper website to find out more about managing your money and to get free advice, they are an independent service set up to help people manage their money
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Adam Southard is authorised as a Licensed Insolvency Practitioner in the United Kingdom by the Insolvency Practitioners Association, We only provide advice after completing or receiving an initial fact find where the individual(s) concerned meet the criteria for one of our insolvency solutions, therefore, all advice regarding Individual Voluntary Arrangements (IVA) is given in reasonable contemplation of an insolvency appointment.
Adam Southard is licensed to act as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association. Office Holder No. 11930
What you need to know about Individual Voluntary Arrangements
(Insolvency Service)
We provide solutions to individuals throughout the UK, We Will help recommend solutions available to your circumstances in which you can then make an informed decision about which solution you qualify for is best for you and your circumstances.