There’s no minimum or maximum debt level needed for a debt management plan but there are certain things creditors will check before agreeing to one. Creditors are most likely to agree to a DMP if:  

There’s no rule against going on holiday during a debt management plan. You can spend your money as you see fit, as long as your living costs and DMP payments are covered first.    

You’re unlikely to be able to afford anything too extravagant as you’ll be living on a strict budget. But an inexpensive break is not beyond the realms of possibility.  

A debt management plan doesn’t get listed separately on your credit file. Instead, each debt included in your DMP will be marked as either ‘AP’ (arrangement to pay) or ‘defaulted’. A debt with an AP marker will stay on your credit file for six years from the date it was settled. A defaulted debt will stay on your credit report for six years from the first recorded default. This means some, or all, of the debts marked as defaulted may already have disappeared by the time your DMP ends.  

For the debts that are still on your credit file when you complete your DMP:  

• all of them should have a balance of zero (meaning you don’t owe anything)  
• they’ll be marked as settled (if they haven’t defaulted) or satisfied (if they have defaulted)  

Even while these debts remain on your credit report, as time passes, it will be possible to improve your credit score if you stay on top of your money. Zero balances and settled debts also help when it comes to getting new credit at lower interest rates

Creditors are likely to agree to a debt management plan if they think it’s their best bet for getting their money back. We’ll let them know how much you can afford to pay each month, along with details of the money you have coming in and all of your essential costs.   

This will show them that you don’t have any leftover income to pay them more than is being offered. Each creditor will decide separately whether to accept the reduced monthly payment. Most of them do.  

If you’re struggling to make your debt management plan payments, contact us as soon as possible. It’s important that you don’t just stop making payments. This would mean your creditors don’t get the money they’re expecting, and they may decide the DMP isn’t working for them. They may then start asking for full payments again.  

We understand that people’s circumstances change. You may find you don’t have as much spare cash at the end of the month to put towards your debts. This may be the result of losing your job or the rising cost of living. Whatever the reason, we can look at negotiating with your creditors to reduce your DMP payments. 

If you’re currently renting a property, a DMP won’t be a problem, providing you pay your rent and any rent arrears as agreed with your landlord.  

If you have a debt management plan and you’re looking to rent a new property, landlords and letting agents usually check financial information that is publicly available e.g. bankruptcy details or court judgments.  

Details of DMPs aren’t publicly available. Landlords and letting agents can’t access your credit report, which shows more detailed information on your debts, without your permission.