Debt Management Plan

If you have unsecured debts of £1,000 or more and can afford to pay at least £80 per month a debt management plan (DMP) may be able to help with your debts.

Watch our 1 minute video on debt management plans

A debt management plan is flexible so payments can be changed to meet your circumstances.

Debt advisor Leanne King talks about debt management plans



A debt management plan is an informal arrangement so payments can be changed to meet your circumstances. If your situation changes and you can afford to pay more (or less) you can change your payment amount quickly and easily. Alternatively if at any point you decide you no longer need to be on a debt plan you can cancel at any time, although you will still have any outstanding debt with your creditors.

An affordable plan

A debt management plan is an informal agreement with your creditors to pay a single, affordable repayment. Your debt management company should calculate your repayment based on an assessment of your monthly income and expenditure.

Potentially freeze interest and charges

A debt management company should negotiate with your creditors to get interest and charges frozen. We can’t guarantee it but we’ll do everything we can to stop you paying interest on your debts or receiving penalty charges from your creditors.

Why use a debt management company?

A debt management company acts as an agent between you and your creditors. They will contact your creditors and arrange a repayment plan that you can afford. The debt management company will become the point of contact between you and the people you owe money too. Over time you should see a reduction in the number telephone calls and letters you receive and any you do get can be forwarded straight to your debt management company. A debt management company will also be able to assess you for other solutions such as an IVA or trust deed.

Debt management from MoneyPlus

Specialists at MoneyPlus manage your debt on your behalf. Once we’ve assessed your income and taken your living expenses into account, we’ll work out what you can realistically afford to repay.
We’ll contact all of your unsecured creditors (the companies you owe money to) and negotiate payments to a more affordable level. Then you simply make a monthly payment to us and we’ll divide the amount amongst your creditors, minus our fee.

Alternatives to a debt management plan

High levels of debt?

You could be eligible for an IVA.

If you have high levels of debt then an IVA could help you pay off your debts over a 5 year period.
More on IVAs

Living in Scotland?

Protected trust deeds are only available to residents of Scotland that are in financial difficulty with debts over £6,000 and meet specific criteria. More on PTDs

The benefits of a debt management plan from MoneyPlus

  • We will negotiate on your behalf, so you pay a lower, affordable, monthly payment to us, which we divide and distribute to your creditors (minus our fee).
  • We will negotiate with your creditors with a view to reducing or freezing your interest and charges. Although this cannot be guaranteed.
  • Your plan is flexible so payments can be changed to meet your circumstances.

Important things to consider:

  • A debt management plan will last until all your debts are repaid, unless you are in a position to offer a full and final settlement, which MoneyPlus will negotiate on your behalf.
  • We only deal with your unsecured debts including personal loans, credit cards, overdrafts, catalogue debts, etc. You must continue to pay any rent, mortgage, council tax, certain hire purchase agreements and utility bills such as gas, electricity and water, as failure to pay these types of debt could have serious consequences.
  • Starting a debt management plan could mean the total amount repaid and the repayment period may both increase.
  • Initial set-up fees and subsequent management fees are payable.
  • During this period payments are not usually distributed to creditors which may lead to accounts falling into arrears or further arrears.
  • A record of your agreement with us will be held on your credit file for up to six years, therefore your ability to obtain credit in the future is likely to be affected.
  • Creditors are not obliged to accept reduced payments or to freeze interest and/or charges, and unless they do so repaying the same debt over a longer period of time will increase the total amount to be repaid.
  • Recovery proceedings, including default notices & legal action (which may incur costs), can ensue & we cannot guarantee that any existing or threatening proceedings will be suspended or withdrawn.

We are a member of the
Debt Managers Standards Association (DEMSA)

DEMSA is an organisation founded to monitor and maintain high standards in the Debt Management industry. All members of DEMSA are bound by the terms of the Code of Conduct established by DEMSA.