Debt Management Plan

One monthly payment, shared between the people you owe. If they agree, you pay back what you owe at a pace you can afford.

Get help How it works

Roughly how much do you owe?

It takes about 5 minutes, and there’s no obligation to go ahead.

About 5 minutes
to answer a few questions online
No obligation
nothing goes ahead unless you agree
A partner debt firm
we pass your details to one
A real person
an adviser can call to talk it through

At a glance

Where it applies: Anywhere in the UK.

Where it applies: Anywhere in the UK
Type: Informal: not legally binding
How long: It depends on what you owe and can pay, often many years
Fees: Some providers charge: check before you agree

General information, not advice about your situation. Limits, fees and lengths change, and the rules differ across the UK.

Why people choose it

One payment
A single payment each month, shared out between your creditors. Less to keep track of.
It’s flexible
It isn’t a formal process, so it can change if your income or costs change.
You pay back what you owe
Some people prefer that to a formal option.

How it works

Look at what you can afford
A debt adviser goes through your income, essential costs and debts to see what you could pay each month.
A plan is drawn up
You’re shown how your payment would be shared out.
Creditors are asked
Each one decides for itself whether to accept.
You make your monthly payment
It’s shared out for you, and the plan can change if your situation does.

An example of how a Debt Management Plan could work

An illustration of one monthly payment, shared between the people you owe. In this example nothing is written off.

Illustrative example

Let’s say you owe

Credit cards: £5,214.30
Personal loan: £3,486.55
Overdraft: £1,962.80
Store card: £1,288.40
Catalogue: £887.95
Total owed: £12,840

After a Debt Management Plan

£214a month

5years

In this example you pay £12,840 over five years, in one monthly payment shared between your creditors. Nothing is written off.

One payment instead of several
Based on what you can afford after essential bills
Some creditors may agree to freeze interest and charges

Get help

An illustrative example, not a real client. It assumes your creditors agree to freeze interest and charges. They don’t have to, and the plan isn’t legally binding. Some providers charge fees, which can make the plan last longer. Results depend on your circumstances, and no outcome can be promised.

Weigh it up

What could help, and what to know first.

What could help

One monthly payment instead of several.
It can change as your situation changes.
Some creditors may agree to hold or reduce interest and charges.
It isn’t a formal insolvency, so it avoids those restrictions.

What to weigh up

Creditors can say no, and can still take you to court.
It may take many years to finish.
It’s usually recorded on your credit file.
Some providers charge fees. Check what you’d pay.

Is it right for you?

It could suit you if

You have a regular income and could pay something each month.
You want to pay back what you owe, over a longer time.
You’d rather keep things informal.

It may not be right if

You can’t afford a regular payment.
You need to be sure creditors can’t take action.
Your debts are so large that paying them in full is unlikely.

Other routes to compare

No one option suits everyone. People often compare these.

Debt Arrangement Scheme
A Scottish scheme to pay back in full over a longer time
Individual Voluntary Arrangement
One affordable monthly payment, usually for five years
Token payments
Very small payments while you can’t afford more