Understand a Debt Management Plan

What this helps you understand

A StepChange adviser explains, in about two minutes, how a Debt Management Plan works. It means one affordable monthly payment, made after essential living costs, which StepChange shares out among your creditors. StepChange says it charges no fees, so all of the payment goes to your debts, and the plan is reviewed with you each year. The video is clear about the risks: creditors do not have to freeze interest or charges, they can still take action including court, your credit file may suffer and repayment can take longer. It closes by stressing the importance of advice first.

• StepChange says it charges no fees for managing a DMP. Some other DMP providers do charge.
• It clearly says that creditors can keep adding interest and charges and can still go to court.
• Made in 2022; the main points still match how DMPs work.

Keep this in mind

A video is general information. Free debt advice and the fees for a debt solution are different things. A video does not assess your circumstances or choose a debt solution for you.

Read our current written guide. You can use it without loading YouTube.