A debt management plan (DMP) is an informal agreement which allows you to manage your finances by making one single monthly payment which is then distributed amongst your creditors.


  • You’ll pay a single monthly payment making money management easier
  • You will know what the fees will be in advance
  • In some cases, interest and charges relating to the creditor balances may be reduced or frozen, but this is not guaranteed
  • A DMP is flexible
  • Owning a home does not affect your DMP


  • There is no defined end date
  • Your credit rating will be affected
  • If you chose to use Turn Debt Around’s sister company Fresh Start UK, there will be a monthly fee

Things you need to know:

  • A DMP lasts until all of your debts are fully paid, or for as long as you need our help.
  • DMP providers may charge fees.
  • A minimum monthly payment may be imposed by a DMP provider.
  • If creditors do not agree to reduce or freeze interest and charges, the total amount you owe may increase as a result.
  • If you choose to cancel the arrangement, your creditors may revoke any commitment to reducing or freezing interest and charges.

Your creditors don’t have to agree to the DMP, however payments will still be made to them by a DMP provider and the creditors have to legally accept those payments towards your debt.

For more information on debt management plans, read our questions and answers. For Debt Management Plans with Turn Debt Around please read our Terms.

Questions & Answers

What is a Debt Management Plan?

A debt management plan is an informal arrangement that is negotiated between you and your creditors. It enables you to make one single monthly payment and in some cases arrangements can be made for interest to be frozen or reduced, but this is not guaranteed.

Your DMP provider will handle the negotiations with your creditors on your behalf.  Once the DMP is agreed, the DMP provider will receive your monthly payment, deduct any fees, then distribute the balance to your creditors.

Am I eligible for a DMP?

Your monthly budget will be reviewed in detail by your DMP Provider, discussing your income and expenditure items.  To proceed with a DMP, you need to have surplus money left over, after your living expenses (for example accommodation, food, rates and utilities) have been paid.

For the DMP to be a suitable solution for you, the budget surplus (after the deduction of any DMP fees) has to be lower than the contractual payments to your creditors.

You need to have 2 or more unsecured debts for a DMP.

How long does a DMP last?

The length of a DMP depends on your individual circumstances, particularly the amount you can afford to pay into the DMP on a regular basis and the total of your unsecured debt.

Will all my debts be included in a DMP?

Your DMP will only include your unsecured debts such as unsecured loans, credit cards, store cards, rent arrears and overdrafts.

Your mortgage or any other secured loans will not be included.

How much does a DMP cost?


DMP costs are charged as an ongoing monthly management fee.

Turn Debt Around provides initial advice and any DMPs are now managed by our sister company Fresh Start UK.  Some providers may charge set up fees, or an increased fee spread across the first six months of the DMP. Fresh Start UK do not charge a set up fee, however, they do charge a monthly management fee over the lifetime of your plan.

Payment to your creditors will be made in month 1, once your 1st full monthly payment is received and processed by Fresh Start UK.

Your monthly payment is decided after an assessment of what you can afford has been carried out. At Turn Debt Around we recommend that you have at least £70 of distributable income per month to pay your debts through a DMP (which will include the management fee*)

Fresh Start UK and Turn Debt Around DMP fees are charged based on the number of separate debts you have. Please see the table below for more on fees. Or visit the important information page for an overview of all debt solution fees.

Debts on Plan
(Active only*)
Initial set up feesMonthly management feesCap on % of fees taken from distributable income
Fees associated with Debt Management Plan taken out after Jan 2016 with Turn Debt Around and managed by our sister company Fresh Start UK

Will anyone know I have a DMP?

Details of your DMP remain private between you, your creditors and your DMP provider. The DMP is not made public. It is therefore up to you if you wish to make any other party aware of the DMP.

Will my credit rating be affected?

It is likely the DMP will have an effect on your credit rating because you’ll not be making your contractual repayments to your creditors.   You therefore may find it difficult to obtain credit in the future.

How do I contact you?

Take the first step to turning your debt around. By completing our online enquiry form. We will advise whether we can help you with a debt solution and arrange a time to contact you to talk through the options.