Debt Management Plan

(available in England, Wales and Northern Ireland only)



A Debt Management Plan is an informal agreement between you and your creditors to pay off your non priority debt such as Personal Loans and Credit Cards. It is a flexible arrangement and can be altered at any time, assets should be safe outside of the plan (providing you keep up with your monthly payments) and you can cancel at any time if you wish to take over the management of your debts yourself.
The Debt Management company will look at your income and expenditure and work out how much you can afford to pay realistically each month towards your debts. They will then contact your creditors and present the reduced monthly payments that you have discussed.
Your creditors are likely to accept the plan and can sometimes agree to freeze or reduce the interest. It is important to understand that as you are offering to pay less than your original contracted payments the arrangement tends to run over a long period of time.
Your monthly payment will be paid to your Debt Management company and they then distribute the money to your creditors on your behalf.

Debt Management plans are usually used when you have debt problems but will be able to make your normal repayments in the foreseeable future.

It is important that you do your research when choosing a Debt Management company as some are fee charging and others are not.


  • You can afford to pay a minimum of £80 towards your debt.
  • You are struggling to pay your monthly contractual payments to your unsecured debts.
  • Have 2 or more creditors.



  • A Debt Management Plan enables you to make one single affordable monthly payment to all of your included debts. This payment is then shared amongst your creditors.
  • There are fee-free Debt Management Plans available.
  • Interest and charges on included debts may be frozen or reduced.
  • Debt Management Plans are flexible, informal solutions and are not legally binding, so should your circumstances improve, you can leave a plan at any time.
  • Your Debt Management Plan provider will deal with your creditors on your behalf.
  • As a Debt Management Plan is an informal solution, you will not be asked to part with any assets you have, such as your home or car.


  • If you are looking for a formal, legally binding solution, a Debt Management Plan will not suit you. As it offers no protection from your creditors taking legal action to recover the debt.
  • Interest and charges are not guaranteed to be frozen.
  • Your debts will still have to be paid in full. Reducing monthly payments to a level you can afford will therefore generally increase the term of your debts.
  • A Debt Management Plan may adversely affect your credit rating. Though your DMP company will be liaising with your creditors, reducing your payments to an affordable amount means that you will not be making your full, contracted monthly payments and therefore a Default may be registered on your credit file.
  • Creditors can still contact you about payments and may refuse to co-operate with any proposed reduced payments.
*All debt solutions are based on your personal circumstances and are subject to acceptance and eligibility

Freephone 0800 009 6211


Consumer Information Service only gives advice, we do not provide any debt solutions and we do not charge for our advice. If during our conversation with you and after discussing the options that are available to your personal situation you decide a debt solution is the most appropriate option for you, then we offer a no obligation referral to carefully selected debt solution providers for which we may receive a referral fee.

Some debt solutions involve fees to you. These fees will always be explained to you and can differ depending on your circumstance. Any fees will be confirmed in writing from the debt solution provider before any agreements are signed.

Consumer Information Service is a trading name of Consumer Claims Service Ltd, registered in England and Wales, Company Number 9703609. Unit 1 Mallard Court, Crewe Business Park , Crewe CW1 6ZQ. Data Protection Registration Number: ZA145229 Consumer Information Service is an Appointed Representative of Debt Help Ltd authorised and regulated by the Financial Conduct Authority 782878. 

The following information about dealing with creditors is available from the Government: