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Debt Management

What is Debt Management?

If you are having difficulty with keeping up with your monthly debt repayments, a Debt Management Plan might help you to get back on track.

A Debt Management Plan (DMP) is an informal agreement that allows you to lower your monthly debt repayments to an amount that is more affordable for your circumstances. Your monthly debt management payment is determined by analysing your income, expenses and financial priorities and seeing what money you have left over to pay to your creditors each month.

You can continue to pay your debt management plan until your debts are repaid in full, or until your circumstances change, or until you decide to opt out of it. It is a flexible plan.

Get debt advice

While debt management carries many benefits it should be noted that there are a number of drawbacks. For instance, your credit rating may be impacted if you are paying reduced payments. As you are likely to be paying a lower amount to all your creditors in a plan it will take longer to clear the debt than it would if you made your contractual payments under the original terms agreed with your lender. You can read more advantages and disadvantages below.

If you are struggling to make your agreed debt repayments, contact us to see if we can help you to make the payments more manageable.

To qualify for a DMP you must be struggling with your unsecured debt repayments and owe money to atleast two lenders. You will need to be able to offer a smaller affordable payment each month.

How does a DMP work?

It is relatively straightforward to set up a Debt Management plan because it is an informal arrangement. You can either set up a Debt Management Plan yourself and negotiate with creditors directly or you can use a Debt Management Company.

If you want to go through a Debt Management Company like ourselves, we will negotiate with creditors on your behalf. The first thing we will do is have a chat to see if it is your best option. We analyse your financial situation including expenses and income, your employment, your debts which allows us to work our what you can afford to pay each month into your DMP.

A Debt Management Plan usually continues until you have paid off your debts in full, or until your circumstances change or until you decide to opt out it. It is a flexible plan designed to suit you.

Fill in the form if you would like to find out more about a DMP and if it might be a suitable option for dealing with your debts.

Fees and key info

We are happy to provide you with debt advice only. We only charge a fee if you opt for one of our debt solutions. Fees will depend on which debt solution we provide and what your personal circumstances are. All fees will be discussed prior to commencement of any service or debt repayment plan. Click here to read our fees and key info Please note: From time to time we may refer you to other services providers or charities such as the CAB.


If you’d like more information on other sources of free debt help and advice you can visit MoneyHelper – an organisation, backed by government and set up to offer free and impartial advice to those in debt. - Click here to visit MoneyHelper

DMP Advantages and Disadvantages


Below are some of the most frequently asked questions about Debt Management that we are regularly asked. If you have any Debt Management queries that aren't on this page, get in touch and we will be happy to answer them for you.

Debt management is a simple process to reduce and clear all outstanding debts without obtaining further credit. We deal directly with your creditors and negotiate on your behalf. In some cases we can have interest and charges reduced or frozen whenever possible, but this is not guaranteed.

Under a Debt Management Plan you look at your monthly income and essential monthly expenditure (house, car, food, clothes etc). After you have paid for all these essential items any money left is called your disposable income. This is what you can offer to all your creditors to settle your debts.

National Debt Relief advise thousands of people on this every month. We can also manage your debt plan for you. Call us to find out more.

  • It is an Informal and flexible arrangement to suit you
  • Payments are tailor made to suit your individual needs
  • You do not have to release equity from property
  • You will repay all of your debts
  • The agreement is preferred by creditors
  • Your details will not be put on an Insolvency Register

We can deal with all your unsecured debts such as: loans, credit cards, store cards and bank overdrafts. If you are struggling to pay secured debts such as your mortgage or HP agreements we will ensure these outgoings are prioritised in your income and expenditure calculation, so you do not fall behind on payments. We will always suggest ways to deal with your secured and priority debts.

The best way to see if you qualify for a Debt Management Plan, or any of our other debt solutions, is to speak to one of our friendly financial experts. Call us for some advice and we will help you achieve your best possible solution. We strive to help you no matter what your situation. Call us now on 0800 888 666 0

This will depend upon your income, expenditure and personal circumstances. We treat each case individually and will make sure it is tailor made to suit your needs. You will only pay what you can realistically afford. This amount is then paid each month by standing order.

No, but you do need a source of income that is more than you require for living expenses.

We are extremely successful at negotiating with creditors and have a proven track record of getting offers accepted. We would like to make you aware that a creditor does not have to accept a reduced payment or to freeze interest and charges and this may result in your repayment term being extended. There is also no guarantee that any existing or threatened proceedings will be suspended or withdrawn. Any further collection actions may incur costs that will normally be added to the debt.

We have a dedicated Creditor Liaison department who will negotiate with your creditors on your behalf. Your dedicated Finance Manager will keep you informed.

No, National Debt Relief offers a complete guarantee of confidentiality and privacy in relation to your financial affairs. We will never disclose any information about you to any outside organisations and will never say who we are when we call you. This means that you can feel safe in providing your contact information, without the worry that others will find out that you are seeking our help.

We do not charge any upfront fees for our Debt Management Plans. There is no set up fee. When you enter into a Debt Management Plan with us we have a set fee of £25 per month plus £2 per account per lender per month. But the maximum fee you will ever pay is never more than £50 (depending on how much money you are paying into your plan).

For example, if you have a Disposable income of £186 per month (Your Debt Management Payment), and you have 8 creditors, your payment would appear to be: £25 plus £2 account per lender per month = £41

But because the maximum fee for this disposable income amount is £35, then this is the actual monthly fee that would come from your payment and not £41.

See the breakdown of payments below in detail.

Disposable Income Amount Maximum Fee
£80 - £99 £25
£100 - £149 £30
£150 - £199 £35
£200 and over £50

Yes. As we negotiate a reduction in your monthly payments, and you are no longer repaying the agreed amount to your creditors, a note of this may be made on your credit report. If you currently have arrears or a history of missed payments or late payments your credit rating will already be affected. Records are retained by the credit reference agency for 6 years.

The length of the programme depends on your own personal circumstances. Once we have gathered all your personal information we will be able to estimate the length of the arrangement.

A Debt Management Plan is flexible and informal. We do not want you to ignore your correspondence or contact from your creditors or those acting on their behalf. Once you have joined the arrangement you will have an assigned designated Personal Finance Manager who will deal with your case and any changes in circumstances that may occur.

Types of Debt Management

Monthly Payment Debt Management

This plan will suit people who can afford to offer their creditors a set monthly payment. Under this plan you decide what can be afforded and offer this to your creditors until your debts are repaid in full.

One off / Lump Sum / Debt Settlement Plan

This plan will suit people who have only a lump sum payment to offer where thay can no longer afford to offer monthly repayments. Creditors will normally be open to accepting a lump sum payment as full and final settlement of a debt where monthly repayments cannot continue. It is not uncommon for creditors to agree to write off a portion of the debt owing in this situation. It is important to do it right so that you have a record of everything that has been agreed.

Debt Management fees Compared

We strive to provide you with the cheapest debt management plans. The table below shows a comparison of our fees and rates compared to a few of the other private debt management companies in the industry.

Debt Management Company Set up fee Monthly charge Min monthly fee
National Debt Relief No set up fee £25 plus £2 per account per lender £25 min - £50 max
Money Plus Advice £399 (monthly management fee also due from month 1) £46/pm or 49% of your monthly payment Whichever monthly charge is lower
GW Financial 50% of the first 4 monthly payments (max £700 in total) 17%, although a short term DMP with a payment of £80/pm will be subject to a fee of 49% £39.95 min - £90 max
DFH Financial Solutions 49% of the first 6 monthly payments subject to a maximum of £200 (Capped at 50% of set up fee and monthly fee together)
23.5% of your monthly payment from month 7 £39.50 min - £100 max

*All information correct as of 10/07/2023. Information may be subject to change.

DI stands for Disposable Income (the money you have available to pay towards your debts each month)

Debt Management example with fees

Below is an example of a typical debt management plan and the fees charged by various companies. Lets say the client has £9,800 of debts owed to 5 creditors. After analysing their situation, it is determined that they can only afford £250 per month to creditors. We'll assume for this example that each company has successfully managed to negotiate a freeze on interest and charges and the client is going to pay the debt management plan until completion.

  • Debts: £9,800
  • Number of Creditors: 5
  • DMP payment: £250 per month
Debt Management Company Set up fee Monthly charge Total fees paid Duration of plan
National Debt Relief NO SET UP FEE £35/pm £1,610 46 months
Money Plus Advice £399 £112.50/pm for 6 months, followed by £46/pm thereafter £2,669 50 months
GW Financial £500 £125/pm for 4 months, followed by £42.50/pm thereafter £2,412 49 months
DFH Financial Solutions £735 £122.50/pm for 6 months followed by £58.75/pm thereafter £3,555 54 months

Notice from the example above that we are the cheapest debt management company and because we do not add initial fees or added monthly payments, your plan will be completed quicker also.

National Debt Relief will enable you to pay off your debts more quickly and with lower fees. Also, because there is no setup fee if you did decide to cancel early into your plan a large percentage of your payments will not be going towards paying fees.

Things to consider

  • Advice is free. A fee is only payable where further services are requested. In a Debt Management Plan we charge a fee to deal with your creditors, distribute payments and manage communications and negoatiations on your behalf. All fees will be explained in detail and discussed prior to commencement of any service or debt repayment plan.
  • Repaying debt over a longer period may increase the total amount to be repaid.
  • Your ability to obtain credit will be affected in the short term and might be affected in the medium to long term.
  • Creditors may still contact you with promotional material or to fulfil contractual obligations to you but they should deal with us in all aspects relating to the outstanding debts.
  • Interest and Charges will only be frozen at the creditors’ discretion.

Apply for a DMP

DMP example

Client Name :
MR s

Total Debts of £25,000

Total monthly repayments before DMP

£603 per month

Total monthly repayments after DMP

£350 per month

Mr S was struggling with debts of £25,000 and creditors were looking for payments of £603 per month. After being refused a remortgage he approached National Debt Relief for assistance. We were able to reduce these monthly payments to £350 per month.