Everything you need to know about DMPs

Our DMP pages will explain everything you need to know and what you need to consider when thinking about a DMP.

Call us today
0800 048 1764

What is a DMP?

A Debt Management Plan (DMP) is designed to help anyone who may be struggling or in arrears with money they have borrowed. Any debts which are managed through a DMP will ultimately be paid off in full providing payments are maintained throughout its lifetime.

Payments in a DMP are normally calculated on what you can afford and not on what you owe. Charges and interest may be frozen or reduced but this will depend on your creditor. Payments to creditors may be reduced, which could in turn increase the length of time taken to repay outstanding debts or arrears to creditors.

Any communication you receive from creditors included on a DMP is normally managed by your DMP provider.

How does a DMP work?

The process begins with a review of your financial income and expenditure. This is normally done by a licensed debt management company.

Once completed they will have an idea of what you can pay towards your existing debts. This is after you have paid essential bills such as rent or mortgage, utilities and council tax. They will hold discussions and negotiate with your creditors with a view to reducing monthly payments which, if successful, may increase the length of time taken to repay what you owe to your creditors.

How do I qualify for a DMP?

When we review your finances and conclude your monthly ‘disposable income’ you will need to have at least £80 to be considered for a DMP.

There are some debts which are excluded from a DMP. These include fines, tax, student loans, current council tax, selected benefits, gas and electric utilities arrears and child support.

We can, depending on circumstances, also include social fund loans within a DMP. Only unsecured debts can be included on a DMP.

Is a DMP right for me?

Managing debts through a DMP will have a negative impact on your credit score as you won’t have maintained contractual payments with your creditors once your debts are managed via a DMP.

A credit report may uncover debts being managed through a DMP. The time this will remain on your credit file for will vary based on how long the DMP lasts. On a DMP your creditors will normally send correspondence to the firm managing the plan. If you miss or make late repayments then your creditors may contact you directly to discuss it further.

If you try to obtain credit in the future it may be at a less competitive rate, or at an above average rate, because of the impact a DMP will have on your credit score.


All the answers you may need about DMPs can be found here. Although this may help you understand more about a DMP we strongly advise that you seek financial advice before entering in to any agreement – even if it isn’t from us. But we’re always happy to help.

What if my personal circumstances change during a DMP?

If your circumstances change, either positively or adversely, you must inform us as soon as possible. This is because it could have an effect on the advice and solution we may have recommended. Any change of circumstances may have consequences but we can only advise once we have the relevant information.

DMP costs -what and how we charge for our services

Financial Management Plan setup fee incorporates the following:

  • Comprehensive fact-find to ascertain your circumstances.
  • Calculating monthly payments based on your circumstances.
  • Preparing the financial statement.
  • Negotiating with creditors on the terms of your proposed DMP.
  • Producing and distributing the proposal to creditors.
  • Setting up electronic access to your plan details through our online portal.

Financial Management Plan monthly fee incorporates the following:

  • Distributing payments to your creditors every month.
  • Managing contact from your creditors (other than annual statements and other key messages which they may be obliged to send directly to you).
  • Help and support from our customer service team.
  • Annual review of your circumstances to make sure the solution is still right for you
  • Access to legal advice through our Open Door team.
  • Online portal
  • Ongoing account management team looking after your account.

How much does a DMP cost?

There are two main costs. There is a setup fee and a monthly fee. The set up fee is 50% of your first six monthly payments from a minimum of £240 up to a maximum of £1400. The monthly fee you’ll pay, once the setup fee is paid, is £38.

How does a DMP affect my credit rating?

As a DMP could result in your existing commitments not being maintained, your credit rating can be adversely affected. A credit report might show debts which are being managed through a DMP.

How long does a DMP last?

This will vary on the level of debt and how much you pay to your creditors on the plan each month.

What debts are excluded from a DMP?

Debts excluded from a DMP include:

  • Child Support Agency arrears
  • Current year council tax arrears
  • Secured loans
  • Mortgage and mortgage arrears
  • Car finance when you still own the vehicle
  • Court or parking fines
  • Rent arrears
  • Gas and electric bills with a current provider
  • Student loans
  • Income tax bills.

What happens to my creditors through a DMP?

The process for managing a DMP requires us to inform your creditors what you can afford to pay them via a DMP. If the proposal is accepted then any contact with them is dealt with through us.

  • Get help now

    Fill in your details and one of our friendly advisors will be in touch.

  • By submitting your details you are accepting our privacy policy
  • This field is for validation purposes and should be left unchanged.

Additional Customer Benefits

Our customers get access to additional services to help improve their financial circumstances. These include:

TV, broadband and landline comparison 

Available to everyone – even if you’re not a Harrington Brooks customer

Read More

Utility switching service 

Available to everyone – even if you’re not a Harrington Brooks customer

Read More 

vas-icon-legal-adviceLegal advice on associated debt issues

Only available to current active Harrington Brooks customers

Read More


Benefit and entitlement checks

Only available to current active Harrington Brooks customers

Read More

What Our Customers Say

Read More Reviews

Explore what's right for you

Getting free impartial advice
The Money Advice Service is an impartial service set up by the Government.
They provide free debt counselling, debt adjustment and credit information services.
visit Money Advice Service

Get the right advice for you


No matter how big or small your problems may seem – we would always recommend that you look for professional advice, even if it’s not through us, before any financial issues start to cause sleepless nights. Read more…

Refer a friend


Know someone who may benefit from speaking to us?  If you refer a friend, who later becomes a paying customer, you’ll receive £100 worth of Tesco vouchers to spend. Read more…