Debt Management Plan Pros & Cons

Debt Management Plan Pros & Cons to help you understand whether a Debt Management Plan is the right choice for you. For more information or assistance, please contact us here.


  • A Debt Management Plan is relatively straightforward to implement.
  • We will assess how much you can afford to pay as a single payment per month and negotiate with creditors’.
  • Any calls from creditors’ can immediately be referred to us and we will deal with your creditors.
  • The arrangement is flexible and it is possible to increase or decrease your payments if your circumstances change.
  • Private individuals themselves or with a spouse or partner can apply for a DMP.
  • Persons in business as sole traders can apply for a Debt Management Plan and it may be possible to continue the business.
  • Directors of limited companies can apply for a Debt Management Plan.
  • Certain professionals (such as solicitors or accountants) who are barred from practising as a bankrupt can enter into a Debt Management Plan with the consent of their professional body.
  • Interest is sometimes frozen.
  • Your home does not form part of the Debt Management Plan.


  • We cannot ‘force’ any creditor to accept your Debt Management Plan offer.
  • Any creditor can take legal action against you without reference to us – even if they appeared to accept the Debt Management Plan earlier.
  • A Debt Management Plan would not be suitable for business debts. Trade creditors’ or HMR&C in respect of tax liabilities would not participate in a Debt Management Plan and would simply resort to usual collection methods (ie court, bailiff action).
  • There is no write off of any of your debts (your debts do not go away).
  • Your credit rating will be affected.
  • Interest can sometimes continue to build up.
Debt Management Plan Pros & Cons