2. Debt Management Plans

A Debt Management Plan is an agreement between you and your creditors to pay all of your debts. You make regular payments to a licensed debt management company. The company shares this money out between your creditors.

The Money Advice Service has information on organisations that can advise you about whether a Debt Management Plan is right for you.

Get a Debt Management Plan

  1. Set up a plan with a debt management company authorised by the Financial Conduct Authority (FCA). Find an authorised company.

  2. The company works out your monthly payments. You’ll have to give details about your financial situation, eg your assets, debts, income and creditors.

  3. The company contacts your creditors and asks them to agree to the plan (they don’t have to).


Some companies will charge:

  • a set up fee
  • a handling fee each time you make a payment

Make sure you understand the costs of your plan.


Debt Management Plans can only be used to pay ‘unsecured’ debts, eg debts that haven’t been guaranteed against your property.

Your responsibilities

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