How does a debt management plan work in the UK in 2026?

20 Sept 2026, 08:57
Q A Reader Asker

How does a debt management plan work in the UK in 2026?

A PoundWise Team Answered by

A debt management plan (DMP) is an informal arrangement where you make one affordable monthly payment, usually shared among your non-priority creditors by a provider. Creditors may agree to reduce or freeze interest and charges, but they do not have to, and they can still take action if payments are missed. A DMP can affect your credit record and may take longer to clear your debts, so compare free help from organisations such as StepChange or Citizens Advice before paying a fee. If using a commercial provider, check that it is FCA-authorised and understand all charges and terms.

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