DMP Payment Calculator
Your DMP Estimate
Monthly Payment-
Months to Debt-Free-
Total Repaid-
Interest Saved (if frozen)-
DMP vs Other Debt Solutions
| Feature | DMP | IVA | Bankruptcy |
|---|---|---|---|
| Legally binding | No | Yes | Yes |
| Debt written off | No | Yes (40-70%) | Yes (most) |
| Interest frozen | Usually | Yes | N/A |
| Credit impact | 6 years | 6 years | 6 years |
| Typical duration | 5-10 years | 5-6 years | 1 year |
| Min debt | Any amount | £6,000+ | Any amount |
DMP Key Facts
Average Duration
5-10 yrs
Interest Freeze
Usually Yes
Free DMPs
Available
How to Use This Calculator
1
Enter total debt
Add all unsecured debts: credit cards, loans, overdrafts.
2
Enter average interest rate
Check your statements. UK average credit card rate is around 18.9% APR.
3
Enter income and expenses
Your disposable income determines your DMP payment.
4
Select interest freeze
Most creditors agree to freeze interest in a DMP, which significantly reduces total repaid.
5
Review your plan
See monthly payment, duration and total cost of your DMP.
Frequently Asked Questions
What is a Debt Management Plan?
A DMP is an informal agreement between you and your creditors to repay your unsecured debts at a reduced monthly rate. Unlike an IVA, it is not legally binding and your debts are repaid in full, but interest and charges are usually frozen.
Are DMPs free?
Yes, free DMPs are available from charities like StepChange, PayPlan and National Debtline. Avoid fee-charging DMP providers as their fees reduce the amount going to your creditors and extend your repayment term.
Will a DMP affect my credit score?
Yes. Reduced payments are recorded on your credit file and a DMP typically stays on your credit report for 6 years. However, your credit score may already be affected by missed payments before starting a DMP.
Can creditors refuse a DMP?
Yes, because a DMP is not legally binding. However, most major UK creditors routinely accept DMP proposals, especially when managed by reputable providers like StepChange.
How long does a DMP last?
Duration depends on your debt level and disposable income. Typical DMPs last 5-10 years, but some can be shorter if you have higher disposable income.
Can I still use credit during a DMP?
You should not take on new credit during a DMP. Your DMP provider will advise you to cut up credit cards and close accounts. Taking new credit could jeopardise your arrangement.
Official Sources & References
Data verified against official UK government sources. Last checked April 2026.