Debt Management Plan.
Solution for England, Northern Ireland and Wales
May not be suitable for all. No loans provided. Fees and disadvantages may apply depending on the solution, Read here
*In the last 12 months our IVA partner The Insolvency Group achieved a write off of 70% or more of debts on over 50% of its cases.” Dated 29/07/2024
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To find out more about managing your money and getting free advice, visit Money Helper
Authorised and regulated by the Financial Conduct Authority
Debt Management Plan.
Solution for England, Northern Ireland and Wales
May not be suitable for all. No loans provided. Fees and disadvantages may apply depending on the solution, Read here
*In the last 12 months our IVA partner The Insolvency Group achieved a write off of 70% or more of debts on over 50% of its cases.” Dated 29/07/2024
Honesty and Integrity
We make a difference
How can a DMP help me?
A Debt Management Plan can help you deal with your debts through affordable payments, stop most interest and charges. It is an informal solution and is not legally binding, meaning you’re not tied in for a minimum period.
What is a DMP?
A debt management plan (DMP) is a debt solution that allows you repay your debts at a rate you can afford.
It is an agreement between you and your creditors to pay off your non-priority debts in one affordable monthly payment.
Payments to your less important debts will be reduced making it easier to pay for your essential living costs
How A DMP works?
A DMP can be used to help you pay off your debts such as loans, credit cards and store cards. You pay back the debt by one set monthly payment, which is divided between your creditors.
DMPs are managed by a DMP provider who will actively deal with the creditors on your behalf. This means you don’t need to deal with your creditors yourself.
"The team were supportive from the beginning. The advice was clear making it very easy to decide a solution path."
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12 Jun 26
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Debt Management Plan FAQ.
DMP is a informal solution
What debts can be included in an DMP?
You can only include ‘non-priority’ debts in a DMP, such as:
- Personal loans
- Credit card debts
- Catalogue debts
- Store cards
- Overdrafts
- Benefits overpayments
- Pay day loans
- Credit and store cards
- Mortgage shortfalls
- The money you owe to HMRC e-g income tax (unless deemed fraudulent)
- Gas, electricity, and water bill arrears
- Benefit overpayments (unless deemed fraudulent)
- Payday loans
- Informal debts from family and friends
- Joint debts, but the other person must also make payments.
What debts cannot be included in an DMP?
Some examples of ‘Priority’ debts that can’t be included in a DMP are:
- Mortgages
- Secured loans/ second charge loans
- Hire purchase agreements
- Council tax
- Utility bills (gas, electricity and water)
- Child support
- TV license arrears
- Court fines
How do I set up a DMP?
Here at Debt Advisory Services Scotland, our experts will take their time to fully understand your personal and financial circumstances and guide you through your options.
If a Debt Management Plan is deemed a suitable solution for you, we can help you by setting up the plan on your behalf.
How long will my DMP last?
A debt management plan should include a signed written contract. It should detail the following information:
- What is the cost of the DMP
- What you will end up repaying for the duration of the DMP
- How long the DMP will run for
Eligibility of an DMP.
There's no specific minimum or maximum amount of debt required, but creditors must agree to be included in the plan.
You can apply for an DMP whether you’re employed, unemployed, self-employed, or retired
You should have a stable source of income (employment, benefits, or pension)
You should be able to afford to make a minimum monthly payment of at least £90.
You owe money to 2 or more creditor
You must be a resident of England, Wales, or Northern Ireland
Here are some typical examples.
Individual Voluntary Arrangement Example
Example case completed in 2024
Repayment calculated using income and expenditure data. Monthly payments and write off percentages are based on individual circumstances.
IVA is typically for a period of 60 months, depending on your homeowner status
Nominees fees £1,900 & Supervisors fees £1,750 = total fees £3,650, this amount is deducted from the repayment amount over the 5 year period
Authorised and regulated by the Financial Conduct Authority
More than a Debt Management Company
At Debt Advisory Services, we are your partners in achieving financial stability, committed to providing honest, ethical, and supportive advice every step of the way.
Let us help you regain control of your finances and get your life back on track.
Together, we make a difference.
DMP Fees.
No upfront fees are required. Fees apply should you decide to enter an arrangement.
In the first 6 months of your monthly payment plan, we charge £42.00 of your agreed monthly payment. This is for the setting up of your plan. This is on top of your monthly management fee detailed below.
This is capped at 47.5% of your calculated disposable income.
Thereafter we charge just your monthly management fee, depending on the number of creditors we are dealing with on your behalf, until your plan ends.
Monthly management fee charges are (your fee will never exceed 47.5% of the monthly payment you make on your plan):
Thereafter we charge just your monthly management fee, depending on the number of creditors we are dealing with on your behalf, until your plan ends.
| No of Creditors | Amount per month |
|---|---|
| 1-5 creditors | £40pm |
| 6-10 creditors | £45pm |
| 11-15 creditors | £50pm |
| 16-20 creditors | £55pm |
| 21+ creditors | £60pm |
However, your fee will never exceed 47.5% of the monthly payment you make on your plan. To see the Terms & Conditions click here, the client has a 14 day cooling off period when they receive the terms and conditions.
Advantages with a DMP?
One affordable monthly payment to your creditors arranged by a debt management provider. The plan allows you to reach the goal of fully repaying your debt, whilst you’re still able to afford the essentials.
If you reach an agreement with your creditors, any actions against you such as CCJs may be suspended.
In most cases, creditors are willing to freeze interest and charges.
Your monthly payment is reduced and flexible should your circumstances change.
Disadvantages with a DMP?
Your creditors and not obliged to accept your DMP. This means they could refuse to freeze interest and charges. However, they do have to accept the payments we make to them on your behalf.
The DMP or the defaults that arise from it will remain on your credit file for six years from the date of your DMP.
Debt will not be written off and you will be required to pay back all of your debt owed.
Creditors including bailiffs will have the right to continue any action against you
Debt Management Plan FAQ continued.
Before you agree to enter a DMP, we will estimate a timescale considering the amount you owe and what you can afford to pay.
Debt Management Plans are an ‘informal’ debt solution which means that the payment level can be amended if your circumstances change which may in turn increase or decrease your estimated timescale.
We do our utmost to get interest and charges frozen, but this cannot be guaranteed, and it is also important that you maintain the agreed payments to your plan as failure to do so could extend your estimated timescale. We will regularly update you on your projected timescale to manage your expectations for completion.
A debt management plan will affect your credit file and score.
As you are paying less than the minimum repayment amount you agreed to when you took out the debt, this will show up on your credit report.
However, once you have completed your DMP, you could start building a good credit score again.
Your credit rating will be impacted for the duration of your plan. It is only after the plan concludes that you can make improvements to your rating.
We strongly advise that you do not take out further credit whilst you are on your DMP as all your expenditure needs should be taken care of in the budget plan that an advisor will help you create.
However, as a DMP is an informal debt solution, and therefore you can still apply for credit whilst you are on it.
It is always recommended that you contact us if you are thinking of doing so to get our advice and see what help we can offer you first.
When choosing a debt solution, it’s crucial that you do make an informed decision – every person’s situation is different, and you’ll need to choose the path that feels right for you.
We can assist you in setting up a debt management plan.
Here are some of the questions you would need to ask when choosing a debt management company:
- Are they FCA authorised?
How long does a DMP last?
Before you agree to enter a DMP, we will estimate a timescale considering the amount you owe and what you can afford to pay.
Debt Management Plans are an ‘informal’ debt solution which means that the payment level can be amended if your circumstances change which may in turn increase or decrease your estimated timescale.
We do our utmost to get interest and charges frozen, but this cannot be guaranteed, and it is also important that you maintain the agreed payments to your plan as failure to do so could extend your estimated timescale.
We will regularly update you on your projected timescale to manage your expectations for completion.
Will a DMP affect my credit rating?
A debt management plan will affect your credit file and score.
As you are paying less than the minimum repayment amount you agreed to when you took out the debt, this will show up on your credit report.
However, once you have completed your DMP, you could start building a good credit score again.
Your credit rating will be impacted for the duration of your plan. It is only after the plan concludes that you can make improvements to your rating.
Can I apply for further credit while on a DMP?
We strongly advise that you do not take out further credit whilst you are on your DMP as all your expenditure needs should be taken care of in the budget plan that an advisor will help you create.
However, as a DMP is an informal debt solution, and therefore you can still apply for credit whilst you are on it.
It is always recommended that you contact us if you are thinking of doing so to get our advice and see what help we can offer you first.
What do I need to look for when choosing a debt management company?
When choosing a debt solution, it’s crucial that you do make an informed decision – every person’s situation is different, and you’ll need to choose the path that feels right for you.
We can assist you in setting up a debt management plan.
Here are some of the questions you would need to ask when choosing a debt management company:
- Are they FCA authorised?
How Debt Advisory Services Can Help You.
Your Finances
We’ll take time to understand your situation and finances
Your Options
We’ll talk you through your options and help you make those important next steps once you are ready.
Your Journey
We’ll be with you from start to finish and we are committed to helping you get your life back.
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Industry Standards
As a proud member of DEMSA, we are deeply committed to maintaining the highest industry standards.
This commitment ensures that our debt management services are conducted with the utmost ethical integrity, transparency, and professionalism.
We strive to build trust with both our clients and creditors, providing solutions that not only meet regulatory requirements but also foster confidence in our approach.
Our adherence to DEMSA’s rigorous standards reinforces our dedication to delivering reliable, trustworthy advice and support throughout your financial journey.
Industry Standards
As a proud member of DEMSA, we are deeply committed to maintaining the highest industry standards.
This commitment ensures that our debt management services are conducted with the utmost ethical integrity, transparency, and professionalism.
We strive to build trust with both our clients and creditors, providing solutions that not only meet regulatory requirements but also foster confidence in our approach.
Our adherence to DEMSA’s rigorous standards reinforces our dedication to delivering reliable, trustworthy advice and support throughout your financial journey.
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