A DMP is an informal solution for unsecured debts. It’s not legally binding, and it lasts until your debts are repaid in full. A DMP allows an individual or a third party to negotiate your monthly payments in order to make them more manageable. The payments are divided between your creditors and are based on what you can reasonably afford. Creditors who are not bound by the DMP can still take action to recover the debt and/or apply interest and charges.

Pros & Cons of a Debt Management Plan (DMP)


  • A single affordable repayment based on your income and expenditure - which you can pay per monthly/ weekly or fortnightly.
  • A Debt management Plan (DMP) is flexible if your circumstances change then your payments can change accordingly.
  • Back2credit would deal with all correspondence from your creditors and ask them to stop sending them to you.
  • Potentially freezing interest and charges - we will negotiate with your creditors we can’t guarantee it but we will do everything we can to stop you paying interest on your debts or receiving future charges so your situation doesn’t worsen.
  • Consolidate all your debt into one affordable monthly repayment.
  • We ask debt collectors and bailiffs to stop calling you.

Things to consider

  • A debt management plan will last until all your debts are repaid, unless you are in a position to offer a full and final settlement, which back2credit will negotiate on your behalf.
  • We only deal with your unsecured debts including personal loans, credit cards, overdrafts, catalogue debts, etc. You must continue to pay any rent, mortgage, council tax, certain hire purchase agreements and utility bills such as gas, electricity and water, as failure to pay these types of debt could have serious consequences.
  • Starting a debt management plan could mean the total amount repaid and the repayment period may both increase. During the setup process, your accounts may fall further into arrears.
  • Initial set-up fees and subsequent management fees are payable.
  • A record of your agreement with us will be held on your credit file for up to six years, therefore your ability to obtain credit in the future is likely to be affected.
  • Cannot guarantee that creditor will stop charging interest or any other charges. This will not necessarily stop creditors from passing your case further.

To find out more, simply call us today on our free phone number 0121 325 3800 or fill in the call back form and we’ll call you back.


Fees are payable with a Debt management Solution, read more here.

Is Debt Management right for you?