Guides › Debt and Buy Now Pay Later › Debt Management Plans: How They Work
Debt Management Plans: How They Work
A debt management plan (DMP) is an informal agreement to repay your unsecured debts, such as credit cards and loans, with one affordable monthly payment shared between creditors. You can set one up yourself or through a firm authorised by the FCA. Some firms charge fees, so check the cost first. Creditors do not have to agree and can still take action.
At A Glance
Your Rights
What the rules say, with a link to the official source for each.
How It Works
The Plan
You repay all your debts through one arrangement. It suits people who can only afford small monthly payments. It covers unsecured debts only. source
Fees
Some companies charge a set-up fee, a handling fee for each payment, or both. Check the firm on the FCA Financial Services Register. source
Not Guaranteed
Creditors do not have to agree, and unless the agreement says otherwise they can still ask for the full balance or take action. The plan can be cancelled if you miss payments. source
Time Limits to Know
Miss a deadline and you can lose a right. Check the dates on your own paperwork.
- MonthlyOne paymentShared between your creditors
Steps to Take
Step 1 of 4
Deal with priority debts first.
Step 2 of 4
Get free debt advice to check a DMP is right.
Step 3 of 4
Use a free provider or check fees in writing.
Step 4 of 4
Ask creditors to freeze interest and charges.
(Tap the numbers to reveal steps)
Where to Go If It Is Not Put Right
Your options, in order, and when each one applies.
Free Debt Advice (MoneyHelper)
Find free, confidential debt advice near you or online.
Citizens Advice or National Debtline
Free debt advice. They can also ask bailiffs for more time on your behalf.
Good to Know
Small things that make your complaint stronger.
These rules are for England and Wales. Scotland and Northern Ireland have different debt and enforcement rules.
Want Help?
If you would like one of our team to look at your problem, our initial case review is free. We cannot guarantee any outcome and we do not give legal advice.
Lead reviewer
Luke Marley
Founder and Lead Reviewer
Luke founded CPUK in 2026 after seeing how hard it is for ordinary people to get problems with companies put right. He oversees our guides and checks them against official sources.
Research by Katie Burt, Co-founder and Operations Lead (17 years in the care sector, including managing services for vulnerable adults), and the CPUK Research Team. Researched with AI-assisted research tools, then checked and corrected by our team.
Last checked: 15 October 2026. We are not paid by the companies we write about. Adverts never affect our guidance. Read our editorial policy.
Sources and official links
- gov.uk/options-for-paying-off-your-debts/debt-management-plans Checked 15 October 2026
- moneyhelper.org.uk/en/money-troubles/dealing-with-debt/options-for-clearing-your-debts-england-and-wales Checked 8 October 2026