Will a debt management plan affect my job?

Some debt solutions, like bankruptcy, can affect certain jobs e.g. if you work in finance or law. 

But informal solutions like a DMP shouldn’t have any impact on your job. 

Unless it says so in your employment contract, you don’t have to tell your employer you have a DMP and your DMP provider certainly won’t tell anyone at your place of work about your debt solution.

If you have any concerns, talking to someone from your HR department might provide peace of mind.

It’s perfectly possible to get a DMP if you’re self-employed.

Just bear in mind, a DMP is likely to impact your credit rating. If your business relies on credit, it’s worth speaking to your provider about possible implications.

A DMP is flexible. This means it may be possible to revise your plan if your circumstances change.

If you’ve lost your job:

• Make sure you know your redundancy rights.
• Check if you can get any benefits to top up your income.
• Look at your budget to make sure you can still afford the essentials. If you can’t, prioritise your household bills and see if there are any areas where you could cut back.
• Speak to your DMP provider to review your plan. They might suggest reducing or temporarily stopping your monthly payments. Remember if you reduce your payments it will take longer to pay off your debt.
• Try to avoid taking out more credit as this may make your situation worse.
  
  

Does redundancy pay have to go towards a DMP?

No – if you’re made redundant, you won’t have to use your redundancy money to pay towards your debts. Your payout is there to cover essential living costs until you find a new job. 

If you have a good sum of money left over once you’re back in work, you could consider paying off your DMP early with a settlement offer to your creditors.