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Money Wellness

DMP & Loans

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<h1>Taking out a loan during a debt management plan (DMP)</h1>
It&rsquo;s probably against the terms of your <a href="https://www.moneywellness.com/dmp" rel="follow">debt management plan (DMP)</a> to take out a loan without speaking to your DMP provider first.
This is because - although it may be possible to get a loan during a DMP - it&rsquo;s not usually a good idea. Any spare income you have will be going towards paying off your existing debts. That means you&rsquo;re unlikely to be able to afford to take on extra borrowing.
If you&rsquo;re struggling to make ends meet on the budget agreed before starting your DMP, speak to your plan provider. They may be able to negotiate lower payments with your lenders.

Shortcuts

Can I take out a personal bank loan during a DMP?

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Most mainstream banks will be reluctant to lend to someone during a debt management plan.
They&rsquo;ll probably be able to see from your credit report that you&rsquo;ve had problems making repayments and are currently paying less than originally agreed on your existing debts.
This will suggest to them that you won&rsquo;t be able to manage extra payments on top.

Can I take out a payday loan during a DMP?

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Although you may be able to get a payday loan during a debt management plan, it isn&rsquo;t a good idea.
Payday loan companies tend to charge extremely high rates of interest, so it&rsquo;s best to avoid them whether you have a DMP or not.
If you&rsquo;re struggling to manage, you should <a href="https://www.moneywellness.com/debt-advice" rel="follow">get debt advice</a> before taking out more credit.

Or learn how Money Wellness can help with <a href="https://www.moneywellness.com/debt-advice" rel="follow">free debt advice</a>.
All our debt advice is free. Some solutions are free. For others, there&rsquo;s a fee.

<h3>Considering a DMP? [exclaim--orange]Get [underline-3--primary80]free[/underline-3--primary80] debt advice today[/exclaim--orange]</h3>

Can I get a car loan during a debt management plan?

If you need to replace your car or buy a new one during your debt management plan, you may be considering a loan. It&rsquo;s important to speak to your DMP provider first. You may be breaking the terms of your DMP if you don&rsquo;t.
Your DMP provider will be able to go through your budget and make sure taking out a car loan is realistic and affordable.
As well as any loan repayments, they&rsquo;ll look at whether you&rsquo;ll be able to cover all the costs involved in running a car including:
<ul>
<li>fuel</li>
<li>insurance</li>
<li>road tax</li>
<li>MOT</li>
<li>servicing/repairs</li>
<li>breakdown cover</li>
</ul>

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Most mainstream banks will be reluctant to lend to someone during a debt management plan. They&rsquo;ll probably be able to see from your credit report that you&rsquo;ve had problems making repayments and are currently paying less than originally agreed on your existing debts. This will suggest to them that you won&rsquo;t be able to manage extra payments on top.

Although you may be able to get a payday loan during a debt management plan, it isn&rsquo;t a good idea. Payday loan companies tend to charge extremely high rates of interest, so it&rsquo;s best to avoid them whether you have a DMP or not. If you&rsquo;re struggling to manage, you should get debt advice before taking out more credit.

Taking out a loan during a debt management plan (DMP)

<h2>DMP (Debt Management Plan)</h2>

If you are looking to lower your monthly payments our free debt management plan (DMP) may be a way to do this.
Try our Solution Finder to see if a DMP is right for you.

Most asked questions

What is a debt management plan?

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A debt management plan (DMP) is an agreement to pay off your debts at a rate you can afford. It&rsquo;s an informal agreement between you and your creditors to give you longer to pay back your non-priority debts (credit cards, loans, store cards, buy now pay later etc.)
You make one affordable monthly payment and this is divided between your creditors. If you come to us for your DMP, we&rsquo;ll deal with your creditors for you.
A debt management plan is not legally binding. This means you can cancel it at any time.

If we are unable to help you with all of your debts, or for further information and support to help you with your money troubles, please visit <a href="https://www.moneyhelper.org.uk/en/money-troubles/dealing-with-debt/use-our-debt-advice-locator." rel="follow">MoneyHelper</a>.

Is a DMP right for me?

A debt management plan might be right for you if you&rsquo;re struggling to keep up with your non-priority debt payments (credits cards, loans, store cards, buy now pay later etc.)
If you can&rsquo;t afford the amount you originally agreed to but you can pay something each month, a DMP could be the answer. A debt management plan can help with temporary and long-term payment problems

DMP benefits & things to consider

There&rsquo;s a lot to think about when you&rsquo;re considering a DMP. To help you decide if a DMP is right for you, we&rsquo;ve outlined the main benefits and things to bear in mind:

<h2>How it helps: A typical example</h2>

Here is how we could help

FAQs

<h2>Why others love us</h2>
Our expert debt advisors have helped thousands of people in a similar situation.

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<h2 style="text-align: center;">But don&rsquo;t take our</h2>
<h2 style="text-align: center;">word for it...</h2>

Learn more about DMPs

There&rsquo;s a lot to think about when you&rsquo;re considering a debt management plan and you&rsquo;ll probably have a lot of questions. We&rsquo;ve put together some guides that we hope will answer those questions. If you can&rsquo;t find the information you&rsquo;re looking for, get in touch and we&rsquo;ll be happy to help.
<a href="https://www.moneywellness.com/guide/dmp/mortgages-dmp" rel="follow" style="color: rgb(15, 100, 248);">Debt management plans (DMP) and mortgages</a>
<a href="https://www.moneywellness.com/guide/dmp/how-long-on-credit-file" rel="follow" style="color: rgb(15, 100, 248);">How long does a debt management plan (DMP) stay on your credit file?</a>
<a href="https://www.moneywellness.com/guide/dmp/loans" rel="follow" style="color: rgb(15, 100, 248);">Taking out a loan during a debt management plan (DMP)</a>

A wide range of debt solutions and services

It may be that a DMP isn&rsquo;t quite right for you and another debt solution is more suitable. We&rsquo;ll make sure we recommend the one that&rsquo;s best for your individual circumstances and your long-term financial wellbeing.
Find more information on alternatives to a DMP.

Debt solutions

Debt Solutions

It’s probably against the terms of your debt management plan (DMP) to take out a loan without speaking to your DMP provider first.

It&rsquo;s probably against the terms of your <a href="https://www.moneywellness.com/dmp" rel="follow">debt management plan (DMP)</a> to take out a loan without speaking to your DMP provider first.
This is because - although it may be possible to get a loan during a DMP - it&rsquo;s not usually a good idea. Any spare income you have will be going towards paying off your existing debts. That means you&rsquo;re unlikely to be able to afford to take on extra borrowing.
If you&rsquo;re struggling to make ends meet on the budget agreed before starting your DMP, speak to your plan provider. They may be able to negotiate lower payments with your lenders.

Taking out a loan during a debt management plan (DMP)

Can I take out a personal bank loan during a DMP?

Can I take out a payday loan during a DMP?

Considering a DMP? Get free debt advice today

Can I get a car loan during a debt management plan?

Money Wellness blogs