Debt advice services


It’s essential to carefully consider the implications of a Debt Management Plan (DMP) and explore other debt-relief options before making a decision. While a DMP can offer relief for those struggling with debts, it may not be the best solution for everyone.

Before entering into a DMP, it is advisable to seek professional advice from reputable debt advice charities such as StepChange or PayPlan to understand how it may impact your unique financial situation.

Benefits of a Debt Management Plan

Expert Guidance

StepChange and PayPlan are reputable debt advice charities with experienced and knowledgeable advisors. Speaking to them provides access to expert guidance from professionals who understand the complexities of debt and can provide tailored solutions based on your specific financial situation.

Free and Impartial Service

Both organisations offer their services for free, without any obligations or hidden costs. They are independent and impartial, meaning their advice is solely focused on helping you find the best solution for your debt problems.


When you seek debt advice from StepChange or PayPlan, your information is treated with the utmost confidentiality. They prioritise your privacy and ensure that your personal and financial details are secure.

Comprehensive Debt Assessment

Advisors at StepChange and PayPlan will conduct a thorough review of your debts, income, and expenses. This assessment enables them to gain a clear understanding of your financial situation, allowing them to provide tailored advice that suits your needs.

Debt Management Plans (DMPs)

StepChange and PayPlan can help set up Debt Management Plans if appropriate for your situation. A DMP consolidates your debts into one affordable monthly payment, making it easier to manage your repayments.

Negotiation with Creditors

Debt advisors from these organisations can negotiate with your creditors on your behalf to freeze interest, lower monthly payments, or agree to more affordable terms, giving you some financial breathing space.

Peace of Mind

Dealing with debt can be stressful and overwhelming. Speaking to reputable debt advice charities like StepChange and PayPlan can provide peace of mind, knowing that you’re taking proactive steps towards resolving your financial difficulties.

Consequences of Debt Management Plans

Impact on Credit Score

Entering into a DMP can negatively impact your credit score. While your credit score may already be affected if you were struggling with debts, a DMP will be recorded on your credit report and may be visible to future lenders.

Extended Repayment Period

By reducing the monthly payments, a DMP can extend the overall repayment period for your debts. This means it may take longer to become debt-free compared to other debt resolution options.

Limited Access to Credit

While on a DMP, obtaining new credit can be challenging. Many lenders may see you as a higher risk due to the DMP record on your credit report, making it harder to secure new loans or credit cards.

Potential Impact on Assets

Depending on your specific circumstances and the DMP’s terms, you may need to use assets (such as savings or property equity) to contribute to the repayment plan.

Possible Creditor Rejection

Not all creditors are obligated to accept a DMP proposal. While most major creditors may cooperate, some smaller or more aggressive creditors may continue collection efforts or reject the DMP proposal.