a debt management plan or dmp can help you feel more in control of your finances if you're struggling to repay your debts it allows you to make a single monthly payment towards your debts based on what you can afford and after you've covered your essential living costs so let's take a look at some of the benefits and risks of a dmp a dmp can be a more affordable way for you to manage your debts and at step change we don't charge any fees for managing your plan or for contacting your creditors the whole of your monthly payment goes towards repaying the money you owe and you'll be able to track your progress as you move out of debt when your dmp is up and running you'll make your payments directly to us and then we'll distribute it among your creditors then each year you'll need to review your finances and your plan with us this is important not only to make sure that a dmp is still suitable for you and for your circumstances but to also prevent your plan from being stopped so hopefully that sounds good however there are several risks that you'll need to consider a dmp shows your creditors that you're willing to pay back the money you owe and in many cases they'll stop adding interest and charges to your debts but this isn't a guarantee and they can still continue to apply interest and charges to your debt and take further action including taking you to court it's also worth remembering that because you're making lower payments towards your debts your credit file may be affected and it may take longer to pay your debts back finally it's important to get expert debt advice to make sure it's suitable for you we offer free debt advice online or over the phone we'll help you put together a realistic budget and recommend the most suitable debt solution for you if we think a dmp is your best option after getting that advice we'll give you the advice you need and be here to support you every step of the way