What is a Debt Management Plan (DMP)?
This guide covers England and Wales
The short answer
A Debt Management Plan (DMP) is an informal agreement to repay debts over time. A provider can collect one payment and share it between creditors.
Free plans are available. Some providers charge fees. Creditors do not have to agree or freeze interest, and a plan does not give the legal protection of an IVA.
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How a DMP works
A provider looks at income, spending and debts, then asks creditors to accept a payment plan. We do not assess your finances or negotiate with creditors.
The aim is to repay the debts in the plan. There is no fixed term for every DMP. The amount owed, payments, interest and fees can change how long it takes.
Which bills need separate attention
MoneyHelper says DMPs are for non-priority debts, such as credit cards, overdrafts and unsecured personal loans. Priority bills can have more serious consequences if unpaid.
- Keep mortgage or rent, council tax and other priority bills separate.
- Tell a free adviser about all debts, including any court papers or threats to your home.
- A DMP does not stop a mortgage lender enforcing its security.
Free plans and paid plans
Some organisations arrange DMPs without charging you a fee. Others charge setup or ongoing fees, leaving less of each payment for creditors. Check the written fee terms and free alternatives before agreeing.
Limits and alternatives
Creditors can refuse a plan. Unless they agree otherwise, they can still ask for full repayment or take recovery action. Reduced or missed contractual payments can affect your credit record.
If payments become difficult, contact the existing provider rather than stopping without discussing it. A free adviser can explain informal arrangements, IVAs, Debt Relief Orders and bankruptcy without this site selecting one for you.
What to do next
Free, independent debt advice
These services are free. They will not judge you, and they can look at your whole situation.
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Free advice on debt, housing, benefits and more. By phone, online or in person.
Call free: 0800 144 8848 (number checked on their website on 24 October 2026)
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Free money guidance backed by government. It has a tool to find free debt advice near you.
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- Compare debt management plan providersDebt management plan (DMP) providers compared: which are free, which charge fees, and their Trustpilot review scores.
- Debt options: IVA, bankruptcy, DRO and moreThe main ways to deal with debt you cannot pay, in plain English: IVA, bankruptcy, DRO, debt management plan and Breathing Space. Costs and risks.
- IVA or Debt Relief Order? The main differencesA side-by-side look at an IVA and a Debt Relief Order in England and Wales: who can have each, cost, length and the rules. We do not pick a winner.