How to Get a Debt Management Plan for Free in the UK
Published 23rd of May 2011·Updated 8 April 2026
Reviewed by: Reviewed for accuracy April 2026
You never need to pay for a debt management plan (DMP) in the UK. Free DMPs are available from charities including StepChange, National Debtline and PayPlan, and these free providers offer exactly the same service as commercial companies that charge fees. Paying for a DMP simply reduces the money going towards your actual debts.
Short Summary
A debt management plan is an informal agreement where a third party negotiates with your creditors on your behalf. You make one affordable monthly payment, which is then distributed between your creditors. Interest and charges are often frozen as part of the arrangement.
StepChange processed over 680,000 debt advice contacts in 2023 and is the UK's largest free debt advice provider. National Debtline and Citizens Advice also provide free DMPs and support across England, Wales, Scotland and Northern Ireland.
Commercial debt management companies charge fees of between 15 and 25 per cent of your monthly payment. On a £400 monthly payment, that is up to £100 per month going to the company rather than your creditors. Over a five-year DMP, the total fee could exceed £6,000.
A DMP is not legally binding, which means creditors can still add interest or take legal action, though this is uncommon once a plan is in place. If you need stronger legal protection, a formal solution such as an IVA or Debt Relief Order may be more appropriate.
What exactly is a debt management plan?
A DMP is an informal repayment arrangement managed by a third party on your behalf. The third party, whether a charity or commercial company, contacts each of your unsecured creditors and negotiates a reduced monthly payment you can genuinely afford. They also request that creditors freeze interest and charges for the duration of the plan.
Once agreed, you make a single monthly payment to your DMP provider. They distribute this between your creditors according to the negotiated proportions. This simplifies your repayments to one payment per month and can significantly reduce your monthly outgoings.
A DMP is suitable for people who have some money left over each month after essential spending, but not enough to meet all minimum debt repayments in full.
Which free DMP providers are available in the UK?
| Provider | Contact | Notes |
|---|---|---|
| StepChange | stepchange.org / 0800 138 1111 | UK's largest free debt charity |
| National Debtline | nationaldebtline.org / 0808 808 4000 | Covers England, Wales and Scotland |
| Citizens Advice | citizensadvice.org.uk | Local offices across the UK |
| PayPlan | payplan.com / 0800 280 2816 | Free DMP service funded by creditors |
| Christians Against Poverty | capuk.org | Free local debt coaching and DMP support |
All of these providers are free to use. They are funded through voluntary donations or by creditors who pay a contribution for the service. You pay nothing extra.
How is a free DMP different from a paid one?
There is no practical difference in the service you receive. Both free and commercial providers contact your creditors, negotiate reduced payments and distribute your monthly payment. The only difference is that commercial providers take a fee from your payment first.
Some commercial providers claim to offer faster service or access to more creditors. In practice, StepChange and National Debtline have long-established relationships with all major UK creditors and are often more effective at negotiating frozen interest precisely because creditors respect their impartiality and standing.
Does a DMP affect my credit score?
Yes. A DMP is not formally recorded on your credit file as a separate entry in the way an IVA or bankruptcy would be, but the reduced payments made through a DMP will typically be recorded as partial payments rather than full payments. This can trigger default notices on individual accounts, which stay on your credit file for six years.
The impact on your credit score depends on whether creditors agreed to the DMP and whether they continue to add interest or mark accounts as behind on payments. StepChange advises that most of their clients see credit files that are already damaged before the DMP starts, and the DMP prevents the situation from deteriorating further.
How long does a DMP take?
The length of a DMP depends entirely on how much you owe and how much you can afford to pay each month. There is no fixed term. If you owe £12,000 and can pay £300 per month with frozen interest, your DMP would last around 40 months (just over three years).
If creditors do not freeze interest, the plan takes longer and costs more. Free providers such as StepChange have significantly higher success rates at getting interest frozen than many commercial companies.
What debts can be included in a DMP?
A DMP can include most unsecured debts:
- Credit cards
- Store cards and catalogue debt
- Personal loans
- Overdrafts
- Payday loans
A DMP cannot include secured debts such as your mortgage or a car on hire purchase, nor can it include priority debts such as council tax, child support or court fines. These must be dealt with separately and always paid first.
How do I get started with a free DMP?
Contact StepChange online at stepchange.org or call 0800 138 1111. Their debt advice process is free, confidential and available online or by phone. You will be asked about your income, essential spending and all your debts. Based on this, they will recommend the most appropriate solution, which may or may not be a DMP.
The process typically takes one to two sessions to complete. Once a DMP is agreed, StepChange handles all creditor contact on your behalf and you receive a simple payment schedule.
FAQ
Can a DMP stop creditors from adding interest?
A DMP is not legally binding, so creditors are not obliged to freeze interest. However, most major UK creditors cooperate with free debt charities such as StepChange and agree to freeze interest as a matter of policy. StepChange reports that the majority of their DMP clients have interest frozen by creditors.
Can I still use my bank account during a DMP?
Yes. A DMP does not restrict your bank account. However, if one of your DMP creditors is also your bank, they may close your account or offset any credit balance against your debt. StepChange recommends opening a basic bank account with a different bank before starting a DMP to avoid this.
What happens if I miss a DMP payment?
Contact your DMP provider immediately. One missed payment does not end your plan, but persistent missed payments can cause creditors to withdraw from the arrangement. Free providers such as StepChange can often negotiate a payment holiday or temporarily reduce the payment if your circumstances change.
Is a DMP the same as an IVA?
No. A DMP is informal and not legally binding. An IVA is a formal legal agreement that requires court involvement and means 75 per cent of your creditors by debt value must agree. An IVA writes off remaining debt at the end; a DMP does not. An IVA also appears prominently on your credit file. Your debt adviser can explain which is more suitable for your situation.
Can I set up a DMP myself without a provider?
Yes, in theory. You can contact each creditor yourself to negotiate reduced payments and ask for interest to be frozen. However, creditors are more likely to cooperate with established charities than with individuals, and managing the process yourself is time-consuming. A free charity provider is almost always the better option.