Learn more about Debt Management Plans
What is a Debt Management Plan?
A Debt Management Plan is an informal repayment agreement between you and your creditors to pay all of your debts.
Debt management plans are an alternative debt solution to formal arrangements, such as an Individual Voluntary Arrangement or Bankruptcy and available to residents of England, Wales and Northern Ireland.
How do Debt Management Plans work?
Debt management plans are normally used under these circumstances:
- You can only afford to pay a small amount to creditors each month
- You have problems with debt but will have the ability to make repayments within several months
- You can organise a payment plan with your creditors yourself or use a licensed debt management company, fees are charged from these companies
- Payments are made regularly to the company
- The company divides the money between all your creditors
Benefits and Considerations of a Debt Management Plan
Benefits of a Debt Management Plan
- You only pay one affordable payment to the DMP company
- Flexibility – The payment is flexible depending on your circumstances, it can increase or decrease
- Payments can be reduced & interest rates can be frozen by creditors, however, they are not obliged to do this
- Some charities & organisations provide this service free of charge (you can contact the Money Advice Service for more information)
- Avoids the need for a Formal Insolvency Procedure
Considerations of a Debt Management Plan
- All the creditors need to agree to their individual arrangement for this plan to be effective
- Interest & charges are not guaranteed to be frozen
- Your credit rating is affected as your monthly payments are not contractual
- Debt management plans can affect your credit file for a minimum of 6 years, as in most cases you will have defaulted on the original credit agreement terms once you enter into the arrangement
We're here to help people get debt free
At UK Debt Service we specialise in Individual Voluntary Arrangements (IVAs) and help people become debt free.
Our advisors are here to listen and help you understand the options available based on your individual circumstances and see if an IVA is the most appropriate solution.
Start your journey towards a debt free future today and see if you qualify for an IVA.
Debts we can help with
We can help with unsecured debts including the below and more
Council Tax Arrears, HMRC debt & benefits overpayment
Payday loans, bank loans & overdrafts
Credit cards, store cards & catalogues
Bailiff Enforcement & Debt Collector Action
County Court Judgments (CCJs) & Attachment of Earnings
How to get started in three steps
We will guide you every step of the way to help you get back to enjoying life knowing you're in control of your debts
Complete the online form or call us on 0330 320 0827
Talk to the experts
Talk with us so we can understand your circumstances and take you through your options
Make an informed decision
We'll give you all the information you need to make an informed decision
Check if you qualify for an IVA
Start your journey to a debt free future today. Complete the form and one of our expert advisers will call you back.
UK Debt Services specialises in IVAs, but we will always review your circumstances and let you know all debt solutions available so you can make an informed decision.