Debt management plans are normally suitable if your total unsecured debt is less than £18,000.

If your debt is greater than £18,000 a DMP may still be suitable to give you a temporary breathing space or if your disposable income is particularly high.

Where to start

• Choose the solution – Use the “Which way should I turn” form to get your FREE DEBT REPORT
• Ask the experts – use the Beat My Debt Forum
• Call us now – speak to one of our advisors in confidence to see if a debt management plan can work for you.

Take the first step to beating your debt NOW – Call us free on 0800 077 6180

You can use a DMP for any level of debt as long as you can offer a reasonable repayment each month. The amount you should aim to pay each month would normally be between 0.5%-1% of the amount you owe as a minimum. 

I owe more than £18,000

If you owe more than £18,000, a Debt Management Plan may still be ideal if you need a temporary solution. For example, you may only need to reduce your monthly repayments for a short period of time because you know that you will receive a wage increase in the near future or your wife will return to work or your children finish nursery.
 
Sometimes people do a Debt Management Plan for a few months until their circumstances become more suitable to enter into an IVA.
 
You can not include secured debts in a Debt Management Plan. For example, Mortgage, secured loan payments and car HP payments still have to be paid in full.  If you do not maintain the repayments on these items, you will risk the associated property being repossessed.

In addition, most Crown debts such as Income Tax or VAT can not be included in a DMP. If you have Crown debts then an IVA may be more suitable for you.