DMPs from Step Change Debt Charity

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Monthly Payment Plan

If you’re struggling to pay your debts and finding dealing with creditors difficult, a debt management plan or DMP may help you reduce some of that stress and allow you to deal with your debts in a more affordable way. A DMP is a monthly payment plan that allows you to make a single monthly payment towards all of your debt based on what you can afford. A DMP shows your creditors you’re committed to paying back your debts and can help you feel more in control of your finances.

In many cases, as a gesture of goodwill, creditors will stop applying interest and charges to your debt. Our DMPs are completely free this means every penny you pay into your plan goes towards paying off your debts. You’ll be able to see your balances reducing and work towards being debt free. A DMP is a more affordable way to help you manage your debts however there are some risks involved. It’s not guaranteed to stop creditors contacting you or applying charges and interest to your debt. Creditors could still take further action including taking you to court but we find in practice this is rare. Most creditors are willing to work with us to help you become debt-free.

As you’re making more affordable payments to your debts your credit file may be affected and it may take longer to pay your debts back. As a DMP provider, we can help you set up and run your DMP. First, we’ll help you put together a monthly budget. Once we’ve made sure your essential costs like food, travel and rent and mortgage payments are covered. We’ll work out a realistic amount you can afford to pay each month. When your DMP is up and running you’ll make a payment to us and we’ll distribute it fairly to your creditors.

With any debt solution, it’s important to get debt advice and make sure it’s suitable for your situation. As a charity, we offer free and impartial advice through our debt helpline or our online advice service, Debt Remedy. We’ll go through your situation with you and recommend a debt solution that’s right for you. If we think a DMP is your best option we’ll help you get it set up and be there to support you every step of the way.

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