DMP Companies

They tend to last longer than IVAs, however, because they require you to repay what you owe in its entirety, without the unaffordable debt being written off. This means that, for relatively high levels of debt, DMPs tend to be more expensive than IVAs – especially if you choose to go through a private DMP provider.

When looking for a DMP company you need to choose a reputable business.

The best DMP company 2022 is there to assist you with debt support.

There are many debt management businesses to choose from but here is the updated list of the top-rated dmp agencies in the UK.

Best DMP Companies 2022

From our research, here is a list of the best DMP UK companies in August 2022:

  1. Debtline
  2. Business Debt Help
  3. GW Financial Solutions UK Ltd
  4. Trust Debt Advice
  5. NTF Financial Solutions Insolvency
  6. Payplan
  7. National Debt Advice
  8. Stepchange

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Debt Management Companies UK

Are you struggling to manage your debts? Do you owe multiple amounts of money to different creditors and companies?

Getting out of a debt spiral may seem difficult, but there are plenty of debt management options out there to help you break free from mounting arrears.

A debt management company must be authorised and regulated by the Financial Conduct Authority, or FCA.

These companies will work on your behalf to set up a debt plan that works in your best interests.

But what exactly is a debt management plan, or DMP? What is a debt management company – and how might they be able to tailor debt help to your specific needs and circumstances?

To start, make certain to take a close look at the best companies the UK has to offer.

All companies and debt advice services listed in our guide have FCA oversight, and will be more than happy to help you set up a flexible plan of action.

Best-DMP-Companies

The FCA is there to ensure the provider meets the standards necessary. The provider can either be a registered charity or registered office that is fee charging.

If the agency does charge for its services, this must be clear.

What is a Debt Management Plan?

A debt management plan will help you to reduce the amount of debt you owe to companies into more affordable chunks.

  • A Debt Management Plan will allow you to effectively reduce your monthly payments so that you can continue to live within your means and afford to pay these.
  • This form of debt help is likely to be popular with people who owe money to multiple sources at any one time.
  • It is similar to an Individual Voluntary Arrangement, or IVA, in the sense that you will make offers to companies to reduce and clear your debts.

It may surprise you that many creditors are open and willing to discuss reducing monthly debt payments.

Ultimately, many will simply want to ensure they are paid, and it will reduce their costs if they do not have to transfer their debt to bailiffs or collection agents.

However, you must always set up a DMP through debt management companies, or through organisations that offer similar advice and support.

What is a DMP Company?

A DMP company is a business that helps you manage your debts into one monthly affordable payment.

Check out our video explaining what is a DMP and fully explains whether you qualify for a debt management plan:

As the video explains a debt management plan does not suit all UK citizens so it is important to take the debt assessment quiz to see your current circumstances.

Did You Know You Can Write Off Up To 85% Of Your Debts?

Do I Qualify?

You will agree to pay a lower amount via debt management companies, which will then transfer money to your creditors.

In some cases, you may have to pay for debt management companies’ services, meaning it is always a good idea to compare rates before you choose a specific company.

A debt management company will consolidate any unsecured debt and non-priority debt into monthly repayments. Therefore, any money or debt which is tied against assets such as your home or your car may not be applicable.

The same will apply to specific debts such as mortgage rates and tax bills.

Essentially, you can roll credit card bills and other low-level debts into a DMP, though terms and conditions will vary from company to company.

What can they do for you?

Debt management agencies can provide support to individuals who are worried about money troubles. They can look into the finances that you owe and see the best way forward for you.

If you are struggling with managing debts, it is important you find help as soon as possible. Debt management companies can help you prioritise your debts and reduce the overall amount that is owed by you.

The companies can also help individuals with

  • Management Plans (DMPs),
  • Debt Relief Orders (DROs),
  • Individual Voluntary Agreements (IVAs)
  • Bankruptcy

The great thing about these companies is that they know all the laws surrounding debts. The company will also be impartial and can offer the very best advice.

Is a DMP Right for Me?

A DMP or other similar debt management plans are likely to be of benefit to you if you owe multiple low level debts to several creditors.

However, do keep in mind that debt management companies may not have any power over creditors being able to continue contacting you while you owe debt.

You should also consider the role of your credit score. While it is possible to set up management plans with poor credit, it is less likely that you will achieve the best rates for repayment and the most flexible repayment schedules.

It is always worthwhile looking for free advice and guidance, therefore, before you approach any kind of debt management company.

Debt management companies will require you to sign a legal agreement and to make sure that you pay back money you owe on a regular basis.

If you fail to repay debt through a debt management company based on timescales they set for you, you may find that your credit score is adversely affected.

You may also find that you default on your agreement, which therefore means the management plan will be cancelled.

It’s so important to ensure you seek paid or free debt advice and help! Be sure to compare the best debt management companies we list here, and do reach out to a UK advisor as soon as you can.

How Does a Debt Management Plan Affect Me?

Many people in the UK ask how will entering a DMP affect me.

So we have highlighted all the areas where individuals are worried about entering a debt management plan agreement.

Does a debt payment plan affect your credit rating?

A DMP will usually lower your credit score rating.

The credit rating will be affected because you’ll be paying less than the minimum repayment.

Reduced payments show you’re having difficulty repaying what you owe, so lenders may see you as high-risk.

Can I buy a house while on a debt management plan?

You can buy a house during your debt management plan.

Mortgage lenders take into consideration your credit rating and interest rates might be bigger due to you being high-risk in a DMP.

If you repay the DMP your credit score will improve and you should find it easier to get a mortgage.

Can I get car finance if I’m on a debt management plan?

You can take out car finance if you’re in a debt management plan.

The car finance lenders might ask for higher deposit amounts or charge adverse credit interest rates.

Lending for a new car comes down to your credit file and a DMP may affect your ability to get large amounts finance.

Can you lose your house on a debt management plan?

A DMP does not affect your current mortgage at all.

As long as you keep up the payments to your mortgage lender you cannot lose your house.

A debt management plan can actually make it easier to keep up with your mortgage payments.

Can a DMP take my inheritance?

Any money you inherit comes to you, not to your creditors or your DMP firm.

You will be expected to prioritise paying back the debts in your debt management plan, so any inheritance money you receive should go towards paying off this arrangement.

You could consider making a full and final debt settlement and offer to pay a proportion of the debt level back.

Can a DMP take my redundancy payment?

If you receive a redundancy payment while in a Debt Management Plan you are not legally obliged to pay off any of your debts.

You are allowed to keep the money and use it in any way you want.

You could consider repaying extra to complete your DMP much faster.

How Do I Arrange a Debt Management Plan?

Arranging a debt management plan is as simple as apply to the debt management companies in our list.

We have made sure to list companies and services with complete FCA approval and track records to show that they are reliable and above board.

You can also rely on these companies for a variety of debt advice, meaning you will always have the opportunity to consider your needs carefully before filling out an application.

It’s always a good idea to reach out for help. Never approach a creditor on your own with a plan of your own making until you have the best debt advice on side.

Other Debt Support

There are other channels and options available for debt support, too. It’s not just debt management companies that can help!

You might consider an IVA or Individual Voluntary Arrangement, which is similar to a debt management option in that it will require a third party making an offer on your behalf.

You may also consider making a full and final settlement to a creditor if you come into a large sum of money, but not enough to clear your whole debt.

The last option you should consider when it comes to debt management is bankruptcy or sequestration. This is because, while these options will wipe off your debt, they will adversely impact your credit file for the long term.

Therefore, be sure to take a look through the leading UK debt management companies listed here and carefully read the terms attached. We will never supply details for debt management companies who are not regulated.

However, some companies may be better fits for you than others.

Don’t struggle on your way down into a debt spiral. Contact debt management companies as soon as possible to discuss your current needs, and to set up a feasible, affordable plan of action.

When analysing your credit report and current debtors it is advised to understand all the solutions available to you.

A money advice service is a great idea.

Here are all the debt solutions available to you depending on where you are based in the UK:

Popular Questions

DMP vs IVA?

The main difference between a DMP and IVA is that you are required to repay everything you owe on a DMP, whereas an IVA is able to write off unaffordable debts.

DMPs is an informal agreement with creditors and an IVA is a 5 year fixed legally binding repayment contract.

DMP vs Debt Consolidation?

The main difference between a DMP and Debt Consolidation is that you can open a new line of credit to consolidate your debts into one affordable loan repayment.

A formal debt management plan is created with a credit counsellor and doesn’t involve taking on any additional lines of credit.

DMP vs Debt Settlement?

The main difference between a DMP and Debt Settlement is that Debt management programs (DMPs) negotiate with your creditors to reduce your interest rates and fees, or lower monthly payments for you.

Debt settlement involves offering a lump-sum full and final settlement payment to a creditor in exchange for a portion of your debt being forgiven.

Debt management plan vs Debt relief order?

The main difference between a Debt management plan and a Debt relief order is that a DMP does not wipe off any debts and just realigns them.

A Debt Relief Order is similar to applying for bankruptcy and can severely impact your credit rating.

Debt management plan vs Bankruptcy?

The main difference between a Debt management plan and a Bankruptcy is that a DMP does not involve a write-off of debts and just consolidates repayments into a single monthly affordable repayment plan.

Bankruptcy writes off all debts depending upon the financial circumstances and generally lasts for only 12 months. While a debt management plan can last for many years based on the amount of unsecured debt.

Other Requirements

As well as the FCA, debt management agencies may also have other requirements.

Although not essential, providers can also become DEMSA members. DEMSA stands for Debt Managers Standards Association. This is a trade association.

DEMSA ensures members follow the correct code of conduct. It allows customers to have extra reassurance when choosing a company to help them.

Debt Management Plan Programme

Your Debt Management Plan (DMP) is a programme where all of your unsecured debt repayments are consolidated into a single – affordable monthly repayment plan.

A Debt Management Plan is not a loan, so you are not borrowing more money and not getting further into debt.

The Debt Specialist Team negotiates on your behalf to make your payments as manageable as possible.

You can pay weekly, fortnightly or monthly depending on how you budget, making it convenient and affordable for you.

Before entering into a Debt Management Plan Programme make sure to check the debt management plan reviews from the FCA approved company you decide to sign up with.

All UK Insolvency Practitioners

Here is a full list of Insolvency Practitioners in the UK:

The insolvency practitioner list above gives you plenty of options to choose the best IVA firm in August 2022.