Debt management plan (DMP)

A debt management plan (DMP) helps you to manage your debts and pay them off at a more affordable rate by making reduced monthly payments. DMPs from StepChange Debt Charity are fee-free.

We'll work with you to establish a budget that meets your household's needs. Any money left over will be consolidated into one monthly payment to your debts.

Many debt management companies provide DMPs, but can charge a fee. We don't charge any set-up or monthly fees.

Our DMPs are available throughout the UK.

StepChange DMP benefits

  • Some companies charge a fee for DMPs - as a charity we don't. Every penny you send to us goes towards repaying your debts.
  • We start by agreeing a monthly household budget. That way, only money you can afford goes to your creditors.
  • If you've fallen behind with any of your priority household bills, you can use your DMP to get these bills back up to date.


  • Some of your creditors may still contact you, but we will offer support and advice every step of the way.
  • Most creditors will see that you’re repaying and agree to stop interest and charges as a gesture of goodwill, but some may not.
  • As you’re making reduced payments your credit rating will be affected.

Other things to consider with DMPs

Your creditors don’t have to agree to the reduced payment offering in a DMP, but even if they don’t we’ll still send them your payments, as they legally have to accept them as repayment on your debt. Until your DMP is set up your creditors won't receive payments from us on your behalf.

You need to be aware that if creditors continue to add interest and charges, this could increase the total amount you currently owe.

As you’ll be making lower, more affordable payments it'll take longer to repay your debts on a DMP than if you were to continue to make your contractual payments.

Watch: An introduction to DMPs

Is a DMP suitable for me?

A DMP may be suitable if you have some money available each month once you have met your priority costs such as food, accommodation and utility bills.

We’ll work with you to establish a budget that meets your household’s needs. Any money left over will go to your creditors.

How does a DMP work?

You make a single monthly payment to us and we divide it among those you owe money to.

A DMP can help to reduce the stress you may have felt from dealing with your creditors. It shows them that you’re committed to repaying your debts.

What should I do if I've fallen behind on my household bills

If you've fallen behind with your priority household bills (like gas, electricity or mortgage) and built up arrears then we can add these onto your DMP so that they're included in your monthly DMP payment.

If you add these arrears onto your DMP we'll help you clear these as quickly as possible. Once your arrears start to clear the amount that's being paid towards your unsecured debts will increase.

This makes repaying your arrears easy and stress free as it's all included in the single monthly payment you make to us. All you need to do is make sure you continue to make the normal monthly payment towards your priority household bill.

Why pay for a DMP?

At StepChange Debt Charity we don’t believe that you should pay for a debt management plan. That’s why, unlike many debt management companies, we don't charge you to administer your plan.

That way, you can be sure every spare penny you have is going towards paying your creditors.

Want to switch your DMP to us?

If you already have a DMP and are being charged for it, some of your monthly payment may be going as fees to your debt management company. Switching to a free StepChange DMP means that all of your monthly payment goes towards repaying your debt – so you’ll be debt free more quickly.

Moving your DMP to StepChange Debt Charity is straightforward. The first step is for us to learn more about your debts and your household budget so that we can recommend the right debt solution for you.

We can also advise you if the debt management firm you have been with has recently been closed by the Financial Conduct Authority (FCA).

What next? How to apply for a DMP.

  1. The first step is to see if a DMP is the right debt solution for you. You can do this online by using our Debt Remedy tool or by speaking to one of our advisors.
  2. If a DMP is right for you, we'll provide information on how it would work and tailor it to your personal circumstances. We can set up your DMP quickly and easily.
  3. We’ll contact your creditors to tell them how much you’ll be paying each month. Then we’ll collect a single monthly payment from you and divide it fairly between them.

Get online debt advice

Use our online tool to get tailored debt advice in around 20 minutes.

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Why Choose Us?

We are the UK’s leading debt advice and debt management charity.

  • We'll set up your DMP for FREE

Unlike other companies we'll set up and manage your DMP completely free of charge.

  • EXPERT advisors

Our debt advisors are experts in helping people deal with debt. They'll be on hand to help you every step of the way.

We're rated

4.8 Stars
4.8 out of 5
Read our reviews »

This is the average rating of our service by DMP and DRO clients three months into their solution.