Debt Management Plan (DMP) Fees

Debt Management Plans (DMPs) can be a helpful tool for managing your finances, allowing you to consolidate your debt and pay it off in monthly instalments depending on your budget. However, before you agree to a DMP, it’s important to understand the types of fees and costs involved, and whether you can minimise them.

Types of DMP Fees

The process of setting up a DMP involves various costs. Therefore, it’s normal for your DMP provider to charge you a fee to cover these costs and the work involved in creating your DMP. There are two main types of fees you might encounter with a DMP:

Arrangement Fee 

This fee covers the initial assessment of your financial situation, as well as the DMP setup, covering tasks such as going through your budget and draft payment plan, negotiating with your creditors and setting up an account with your debt advisor. As it is for the initial period while your DMP is being put together, this is just a one-time payment and can usually be paid in instalments over a number of months.

Monthly Management Fee 

For ongoing management of your plan, you may be charged a monthly fee to cover the DMP provider’s administrative costs. This covers tasks such as continuing to liaise with your creditors on your behalf, reviewing your financial circumstances and offering continued support and advice. This is usually calculated at a percentage of the payment you make to your creditors but is capped at 50%.

At MoneyPlus, we are committed to providing you with top quality service and supporting you throughout your DMP. Find out more information about our Debt Management Plan fees and examples of how they work here.