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A DMP is an informal flexible arrangement where you maintain a regular affordable payment towards unsecured debts. There are fewer criteria needed to be eligible for a DMP than an IVA and this can be reassessed at any point to ensure payments are affordable. Not all credit has to be included in a DMP, and assets owned do not affect eligibility for this option.


An IVA is a fixed formal arrangement which can only be applied for when debts owed are more than £5,000 and outweigh any assets you may have. Generally, an IVA would require a minimum monthly payment of £100. If an IVA is possible, some debt can be written off through this and you would usually be debt-free after 5 years. This can sometimes be extended to 6 years if you have a property with sufficient equity.

A DMP does not officially show up on a credit file as it is an informal solution. However, if an account has not already been defaulted due to missed or reduced payments, then a default would usually be applied once the monthly minimums are no longer being maintained.

We would always recommend speaking directly to the company contacting you in the first instance to try and get an arrangement in place as soon as possible. Sometimes they can place things on hold for you if you are unable to make any payments straight away. Once these are dealt with, we can work out what options are available for you.

We do not recommend adding guarantor loans on to any debt solution as the person who is the guarantor is also 100% liable for the debt. This means if you pay less than the agreed monthly payment the guarantor would be pursued for the rest of the payment. There are some circumstances in which we can help with these so we would always discuss the options and work out what is best for you.

The length of a debt management plan depends on the amount being paid to your plan per month, how much debt is being paid and how many different accounts you need help with. The more that is paid each month, the shorter the timescale would be. Extra payments can also be made at any point which speeds up the time of the plan.

As a DMP is informal, you are not tied into a contract. If at any point you decided to deal with your debts another way or you pay them off earlier than expected there are no additional fees you must pay.

Yes, as long as they give authority to us for you to speak on their behalf and can sign documentation that is sent to set up the plan. If your partner/family member already has a plan with us and they want you to speak with us, they can prove authorisation for you to speak with us on their behalf. This helps if the client is ill, struggling to deal with finances or overseas etc.

The monthly fee is based on how many creditors (debts) you have. The more creditors there are the higher the fee will be due to the volume of work that has to be put into to contacting these creditors. When we contact them, we attempt to stop the interest and charges, reduce the contact, and set up the payment arrangements.


We do cap our fees at 50% of your payment amount therefore you will never be charged a fee higher than what you pay to your plan.

It cannot be guaranteed that interest and charges will be frozen with a DMP. However, we negotiate with your creditors to stop all interest, charges and action against you and in 99.9% of cases we are successful.

An annual review is an assessment of your financial situation and takes place every 12 months. It is conducted to ensure the plan’s suitability and that your payments remain affordable. During the annual review, we will discuss your income and expenditure and your current financial situation and advise which debt solutions you will and will not be eligible for. The debt advice provided is tailored to your needs and ensures you are on the best debt solution.

Annual reviews can be completed on the phone, digitally or by post.

An account will default if you miss payments or do not pay the minimum contractual amount. Before an account becomes defaulted, you will receive a default notice as per the Consumer Credit Act. A default is then registered on your credit file for 6 years, this can make it harder to apply for additional credit. Your creditors may take further action after the account has defaulted; this includes but is not limited to:


  • Passing your debt to a collection agency
  • Taking court action
  • Applying to a court to reclaim vehicle or other goods/assets

Yes, you will still receive correspondence from your creditors from time to time. Your creditors must issue letters to you for information purposes, and it is important you do not ignore any correspondence from them. If you are unsure of any correspondence you receive, you can send a copy to us and we will investigate this for you.


You may receive a variety of letters; this list includes but is not limited to:


  • Arrears notice
  • Default notice
  • Account statement
  • Missed payment notification
  • Broken arrangement
  • Legal action notice
  • Court notifications
  • Offer acceptance

If at any point the agreed payments are unaffordable, please contact us as we are here to help. Whether this is short term or long term we can book you in with one of our Advisors to discuss a new repayment plan. The plan is flexible around you and we can make the creditors aware of the changes and send a new financial statement to them based off the changes.

After completing your annual review, we request you send in a 30-day bank statement valid from within the last 3 months from the date of your annual review. We request a 30-day bank statement to ensure that the figures provided in your annual review are accurate. Your 30-day bank statement is proof that your debt management plan is affordable.

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Money Helper has replaced the Money Advice Service and brings together the support and services of three government-backed financial guidance providers: the Money Advice Service, the Pensions Advisory Service and Pension Wise.