A range of options for those facing financial hardship.

Debt management plan

A Debt Management Plan (DMP) is an agreement between you and your creditors to pay all of your debts.

A DMP is usually used when you can only afford to pay creditors a small amount each month or there is a short-term problem that means that you need a temporary reduction in your debt repayments.

You can arrange a plan through a licensed Debt Management Company, usually for a fee.  There are non fee paying companies and charities but you should always ask at the outset how these organisations are funded. If you arrange a DMP with a company you will make monthly payments to the company and the company shares the money out between your creditors, after deducting its fees.

Get a Debt Management Plan

Contact an FCA authorised Debt Management Company. The company will work out your monthly payments. You will have to give details about your financial situation, such as your assets, debts, income and creditors.  The company then contacts your creditors and asks them to agree to the plan.

Under a DMP you will pay your debts in full so a longer time period may be necessary.  You can ask your creditors to suspend interest and charges, although your creditors do not have to agree to this.  A DMP is not legally binding so creditors can still pursue you despite the plan being in place. 


Some companies will charge an initial set up fee and a handling fee each time you make a payment. Make sure you understand the costs of your plan and how you pay for it.


Debt Management Plans can only be used to pay ‘unsecured’ debts so any mortgage arrears, court fines, Student Loans have to be paid outside of the DMP. Normally, any debts due to HMRC (including tax credit overpayments) cannot be paid through a DMP.

Your responsibilities

Your plan can be cancelled if you don’t keep up your repayments.

Call us today to speak with one of our advisors who can help you understand your options and find out the right choice for you. We're here to help on 0800 019 8383.


Find out the right choice for you.

Call us today to speak with one of our advisors who can help you understand your options and find out the right choice for you. We're here to help on 0800 019 8383 .

Opening times

Monday - Thursday: 8:00am - 6:00pm Friday: 8:00am - 5:30pm

Saturday: 9:00am - 2:00pm

Sunday: Closed

Vanguard Insolvency Practitioners Limited, Registered address National House, 80-82 Wellington Road North, Stockport, Cheshire SK4 1HW

Company Registered in England and Wales Number 09610770 - Data Protection ZA 131723

Peter Jackson is authorised to act as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association. Data protection registration number ZA103596

The Money Advice Service is a free service set up by the Government to help people make the most of their money. If you would like to learn more click here. The Insolvency Service, an independent government agency, has produced a guidance leaflet on dealing with your creditors. If you would like a copy, click here.

The Association of Business Recovery Professionals, known as R3, produce a booklet called “Is a Voluntary Arrangement Right for Me?”.  If you would like a copy, click here.

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