UK-wide
Debt Management Plan
An informal monthly arrangement negotiated with your creditors. Flexible, but not legally binding on either side.
- Typical term
- Until the balances are cleared
- Type
- Informal arrangement
- Available in
- UK-wide
What it is
A Debt Management Plan is an agreement to pay a reduced monthly amount, usually arranged through a provider who deals with your creditors for you. Nothing is written off, and either side can step away.
Who it tends to suit
- Your money troubles look short-term or your income is likely to recover
- You owe unsecured debts you can realistically clear over time
- You want something you can leave at any point
Benefits
- One monthly payment split between creditors
- Many creditors agree to reduce or stop interest
- No insolvency register entry
- You can change or stop the plan whenever you need to
Things to weigh up
- Not legally binding — creditors can still add interest or take action
- Missed or reduced payments still show on your credit file
- Can take a long time if your payment is small
If you own your home
There is no equity requirement, which is why some homeowners prefer this route.
Not sure this is the right fit?
The finder compares this against every other UK route based on where you live and what you owe.
Compare my optionsMay not be suitable in all circumstances. Fees apply and your credit rating may be affected. Arcadia is an information service — always consider free, independent advice before deciding.