Debt management plan (DMP)

A Debt Management Plan (DMP) is a plan that helps individuals or households manage their debts, when they are unable to maintain their contractual payments to their creditors due to financial difficulties.

You can arrange a DMP yourself but a third party can also arrange this on your behalf if you are not able to. (A third party acts on your behalf as an intermediary between you and your creditors). Many companies provide debt management as a service but most will charge a fee.

But, there are a number of organisations including ourselves, who can provide a DMP which is free of charge.

A DMP is not always suitable for everyone and so it is essential to first work out a budget you are able to live on. (Which excludes payments to your debts). This will help you to stay in control of your spending.

After you have done this, if you have an available monthly surplus to pay your debts, the third party can then write to your creditors to arrange a monthly payment you can afford. You normally pay your DMP by making one monthly payment, which is then distributed to all your creditors. If you have to pay a fee for a DMP, the debt management company will deduct this before distributing the remaining available money to your creditors.

We offer DMP's free of charge to our clients, so every penny goes towards repaying your creditors to allow you to be debt free much sooner.

We always give impartial advice and tell you about all options you may choose to solve your debt situation, so you can feel confident about making the right choice. If you think a DMP is right for you, use our online debt counselling service CCCS Debt Remedy, which provides you with the most appropriate solution to your debt problem. Alternatively contact our free Helpline for an appointment on 0800 138 1111.

FAQs

Can a debt management plan with CCCS stop interest and charges on my debts?

England and Wales > Debt solutions > DMP

A debt management plan is not a legally binding agreement. Your creditors are not obliged to freeze the interest on the debts you have. However, we do have excellent relationships with creditors and we do request that they stop any further interest being added and charges being made.

Do my creditors have to accept the offer on a debt management plan?

England and Wales > Debt solutions > DMP

No, they don't have to accept the offer. But we aim to prepare a budget with you that demonstrates that you are paying your creditors what you can reasonably afford and shows you are not overspending. They will also receive details of payments being made to each of your creditors to show they are all being dealt with fairly. Payments would still be made to your creditors even if they don’t accept the offer.

What if my situation changes while I am on a debt management plan?

England and Wales > Debt solutions > DMP

The amount you pay into a debt management plan isn’t set in stone. If your situation improves or deteriorates, the payment on your plan may need to be amended. If your situation changes drastically, such as if you lose your job, we would review your options to ensure you’re provided with the right advice for your situation.

Can I transfer my existing debt management plan with a different company to you?

England and Wales > Debt solutions > DMP

We don’t have the facility to be able to transfer your DMP from your existing provider. You would need either to call us or use our online debt counselling service, CCCS Debt Remedy.

We will examine your financial situation fully and, if a debt management plan is a suitable outcome, we can then discuss with you how to end the current arrangement you have and set up a new one with us.