Am I Suitable for a Debt Management Plan?

Your eligibility for a Debt Management Plan (DMP) cannot be simply determined by answering a few brief questions. You will need to speak to an expert who help you through your financial situation. There are some basic criteria as listed below:

1.    Do you have unsecured debts of over £5,000?
You may not think that you have £5,000 of unsecured debt as you may have only borrowed £3,000. But if you have not been making your full monthly repayments then interest and charges will have accumulated, which could well have grown to over £5,000 today. Unsecured debts include:

•    Credit and Store Cards.
•    Catalogue debts.
•    Personal Loans.
•    Overdrafts.

2.    Are you insolvent?
Do not mistake the word insolvent for Bankruptcy, as being Insolvent simply means that you cannot afford to repay your debts each month. Do not fall into the trap of repaying minimum monthly payments and thinking you can afford your debts, because with the interest and charges applied you could be paying a lot more than you thought!

3.    Do you have a stable income?
A Debt Management Plan is a way to repay your debts and to make repayments you must have a stable income, so you must therefore be employed.

You need to commit to paying a fixed but affordable monthly sum to your creditors. To agree to this commitment you need a stable income. Unlike a formal IVA, there is a higher degree of flexibility with regards to your monthly payments.


These simple criteria represent a broad generalisation and we would need to speak to you to determine whether you are eligible for a DMP. Call one of our professional advisors on 0808 131 9100 or complete the Debt Wizard.

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)