How Debt Management Works

Here are the steps to help you discover if a DMP could help you and how a Debt Management Plan works.


Decide whether a Debt Management Plan is right for you.

To help you decide, please visit:


Next Step: Speak to a professional advisor

Call us or request a callback for to speak to an expert debt advisor. They will ask you a few basic questions about your current financial sitation. Once they have a better idea about your finances and outgoings, they will be able to discuss with you the options available to you and if you qualify for a Debt Management Plan based on your individual circumstances.


Once you have decided that you want to start a Debt Management Plan

Once you have decided that an Debt Management Plan (DMP) sounds right for you, an advisor will ask you questions about your financial position. This allows them to understand how much money you need to live on and how much is left over for the monthly Debt Management payments. The monthly figure that you can afford to pay into the Debt Management Plan will form the repayment proposal that, with your approval, will be offered to your creditors in the Debt Management Plan proposal. You don’t need to worry about the technicalities of drawing up a Debt Management Plan proposal yourself, that is what an Insolvency Practitioner must do by law on your behalf. Once the Debt Management Plan proposal has been drawn up, you will be asked to check and approve it. Once you have, your creditors will be contacted with your consent.

A meeting is then held with your creditors, again something that will be done on your behalf. This meeting allows your creditors to take a vote on the Debt Management Plan proposal that has been submitted, usually within a few weeks after the proposal has been sent to them.


When the Debt Management Plan has been approved

After the Debt Management Plan has been approved you will receive a report which will state that the DMP has been approved and can go ahead and will also detail any changes to the proposal that you may have agreed to.

Each month you will make just one monthly payment into a specific account set up for your DMP payments.


Changes in financial circumstances during a Debt Management Plan

If your circumstances change, e.g. if your income changes and you need to change your payments, then this information will be given to your creditors.


Debt Management Plans and your credit rating

Very similar to defaults and CCJs on your credit file, your credit rating is likely to be affected for up to 6 years after the Debt Management Plan has been started. However, if you already have a lot of debt in your name, regardless of defaults and CCJS, it is quite likely that your credit rating has already been affected, regardless of whether or not you entered a Debt Management Plan. Taking responsibility and getting started on the right track can certainly prevent it from getting any worse though.

When the Debt Management Plan has completed, all remaining unsecured debt will be written off leaving you debt free!

Have Questions About A Debt Management Plan?

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