Debt Management Plans: benefits and considerations
A Debt Management Plan (DMP) is an informal arrangement where your unsecured debts are combined into a single monthly payment that fits your budget, managed on your behalf.
Potential benefits
- ✓One affordable monthly payment
- ✓Informal and flexible — you can leave at any time
- ✓Creditors may agree to reduce or freeze interest
Important considerations
- A provider may charge fees, which should be explained before you agree
- Creditors do not have to accept the plan and may continue interest, charges or recovery action
- Reduced payments can affect your credit file and may extend the time needed to repay
See if a Debt Management Plan fits your budget
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Why do we ask this?
Your total debt amount helps us match you with solutions designed for your level of borrowing.
Clear Debt Help is a lead generator, not a debt solution provider. If you submit your details and give consent, we pass them to third-party partner firms that provide debt solutions. We may receive a fee from a partner for the introduction. If you enter a debt solution, fees may apply and will be explained by the provider before you proceed.
To find out more about managing your money and getting independent support, visit Money Helper, an independent service set up to help people manage their money.