Debt Management Plans (DMPs)

Debt Management Plans (DMPs)

A debt management plan is an informal and flexible way of helping you to get back on track with your finances

A debt management plan involves us working out a budget with you which includes all of your essential household expenses such as your rent, mortgage, utilities and food shopping. The money that is left over will be used to pay the people that you owe money to (your creditors). This is called your ‘disposable income’.

You would pay Angel Advance a fee each month to contact your creditors for you and try to agree a reduced repayment for each debt. Please see our Frequently Asked Questions – What will Angel Advance charge page for more detail and examples. All of your creditor payments, as well as our fee, is paid out of your disposable income, meaning that you only have to manage a single payment to Angel Advance each month.

During the time that you are on the plan we will ask you not to take out any further credit. ‘Further credit’ includes the continued use of revolving credit facilities such as credit cards, catalogues or store cards. If you do, your creditors are within their rights to refuse a reduced repayment offer and will probably request full contractual payments (i.e. the original amount/rate of payment that you agreed to when you signed the agreement) towards the debt.

The arrangement with us is flexible and can be changed to accommodate your changing circumstances

The creditors may freeze interest and fees when we advise them that you have contacted us for help with your finances

Your creditors will usually stop contacting you and deal with us on your behalf

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You can exit the plan at any time, or change solution if there is another option which is available and suitable for you

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You will make just one payment to us each month rather than having to manage payments to all of your creditors

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You will be assigned a dedicated account manager so you have a consistent point of contact

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We will send you a monthly breakdown of payments received and payments made on your behalf so that you can see how your money has been distributed

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You will pay us a fee for our services. There are companies which can do the same job for free. You can get more information at

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Your creditors do not have to agree to the repayment, or to freeze interest and charges

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Your credit rating will usually be impacted because you will be paying reduced amounts to each creditor

Frequently asked questions

We charge a monthly management fee of £35. There are no hidden costs for reviewing your circumstances or adding extra debts onto your plan. Because we offer the same level of service to all of our Customers we do not believe that it is right to charge more to some Customers just because they have more available income. We feel that it is in your best interests to clear your debts as quickly as possible so we want to send as much to your creditors as you can afford.

Below is an illustration of the cost of a typical plan:

Non priority debt £9,000
Number of creditors 6
Monthly payment £185.00
Set up fee £0.00
Monthly management fee £35.00
Plan length 60 months
Total amount payable £11,100
Total fees payable over the period £2,100

In this example, all interest and charges have been frozen

Angel Advance will not charge you a fee to set up your plan. We believe that it is important for both you and your creditors that you start clearing your debts from day one, rather than charging you a fee and reducing the amount that your creditors receive.

We complete an initial review of your circumstances and budget assessment
We calculate suitable repayment offers to your creditors
We contact your creditors to try and negotiate for interest and charges to be reduced/frozen
We make regular payments to your lenders
We complete a periodic review of your circumstances and financial statement
We complete a monthly/quarterly courtesy call with you
We send you a monthly statement to show what has been paid towards your debts
We will make changes to your plan as often as you need to accommodate changes to your circumstances
We will also continue to contact your creditors on your behalf during any short periods where you are unable to make any payments

Yes – there are several sources of free debt advice available to all consumers. For further information please visit The Money Advice Service is a free and impartial service set up by the government to help people to manage their money.

We can include debts such as bank account overdrafts, credit cards, catalogues, store cards, unsecured loans and payday loans.

It is essential that you continue to make payments on secured debts such as mortgages and car hire purchase agreements because if you fail to keep up repayments to these debts, the lender may consider legal action or repossession. You must also maintain payments for priority debts including rent, council tax, gas and electricity as failure to maintain these repayments could lead to (in the case of rent) eviction, or the loss of essential goods or services. For more information, please see our different types of debt page.

You will also still be responsible for paying student loan repayments and payments required by the Child Support Agency.

We account for the need to maintain these payments when we calculate your single, lower, monthly payment.

Our Creditor Liaison Team will negotiate with your creditors and request that interest and charges on each debt are frozen. This means that the money we send them will reduce the balance at a quicker rate. Please note that your creditors do not have to agree to the reduced offer and in some cases, interest and charges may still be added.

They may also decline to accept your offer if they believe that you are able to pay more than you are suggesting or you do not maintain regular payments.

We aim to contact your creditors as soon as we get your signed Authority to Act, to notify them that we are working on your behalf. This should contribute towards reducing creditor contact, however, you may still receive some contact in the early stages of your plan.

Do not ignore the calls; please notify them that you have now appointed Angel Advance to act on your behalf. Remember, it is our job to deal with your creditors going forward, therefore we ask that you forward any letters or statements that you receive to us using the pre-paid envelopes that we provide.

Your payments to each creditor will be calculated on a pro-rata basis. This means that whatever money is left over from your essential expenses will be split between your creditors on a percentage basis according to the total amount that you owe to them. Payments will be sent to your creditors within 5 working days of the cleared funds being received by us.

If you have experienced financial difficulties your credit rating may have already been affected. Lenders will report to credit reference agencies when payment are missed, or when reduced payments are made. They can also register a default to show that you couldn’t maintain the original payments. This information will remain on your credit file for 6 years and will affect your ability to obtain credit.

No. You must ask our permission before incurring any further debts because increasing your borrowing could affect the viability of your plan. You’ll struggle to get further credit whilst in a debt management plan anyway because you probably won’t be able to demonstrate that you can afford to repay it.

You can cancel your debt management plan at any time by giving us 28 days’ notice. There is no cost to cancel. If you change your mind within the first 14 days of your plan (cooling-off period), you may be entitled to a refund of any fees that you have paid.

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