A Debt Management Plan, often called a DMP, is an informal arrangement that lets you make a single reduced payment each month to a debt-advice provider, who then distributes it across your creditors. It is not the same as a formal insolvency option such as an IVA or bankruptcy — it can be paused or amended, and it does not itself involve the courts.
Who arranges them
Most DMPs are arranged through free, regulated advice providers. The largest of these in the UK include StepChange, PayPlan, Citizens Advice and National Debtline. They do not charge a fee for setting a plan up. Paid-for DMP providers exist, but free providers can do exactly the same job — please check before committing to a fee.
How we work with a DMP
If you are setting up a DMP, or one is already in place, please let us know as early as you can. The quickest way is the Hardship Variation Request form on our Forms & Requests page — note in the message that you are on (or applying for) a DMP and tell us the provider’s name. Once we know:
- we will pause normal collection contact while you and your provider get the plan agreed;
- we will engage directly with your DMP provider on amounts, dates and balance updates;
- we will not apply charges that are not in your credit agreement;
- we will share account information with your provider where you have authorised us to do so.
What a DMP does and does not change
A DMP does not write off your debt — you continue to repay what you owe, just at a rate that is sustainable for you. Interest is normally frozen by your creditors while a plan is in good standing; we follow industry practice on this. A DMP does appear on your credit file and may affect how lenders view future applications, so it is worth talking to a free adviser about whether it is the right option for you.
If your circumstances change again, your provider can review the plan; please do not pay through gritted teeth on a plan that has become unaffordable. You are welcome to contact us at any time if you would like to discuss how your DMP and our account interact.
Still need help with this?
If this article has not answered your question, you can send us a request using one of our online forms, visit the Support page, or email us at support@credicorp.co.uk.