For free and impartial money advice and guidance, visit MoneyHelper, to help you make the most of your money.


Hold Action Debt Management Plan – Sample Letter Template

For free and impartial money advice and guidance, visit MoneyHelper, to help you make the most of your money.


MoneyNerd has made free letter templates ready to download so you can inform your creditor that you are switching DMP provider and there could be a delay in your repayments. Our letter positions this change as a positive thing for them by stating that the new DMP provider will be offering the service at a lower cost or for free, enabling you to make more comfortable repayments to them. It asks the creditor not to take any action while the DMP switch is taking place. 

Download our free letter template to get creditors to hold off taking action while you switch DMP service providers. We have a letter for individuals with debt and for people with joint debts and DMPs. Simply add some account information to make your case stress-free. 

Letter Template

To Whom It May Concern

Regarding Case #: [your case number]* (required

I would appreciate it if you could hold action on the above account for a period of at least 30 days to give me the breathing space I need to do a budget sheet and work out the best way to deal with my debts

Also, if you are adding interest or other charges to the account, I would be grateful if you would freeze these during this period so that my debt does not get any bigger.

I will contact you again as soon as possible with further details of my financial situation and my proposals for repaying my creditors.

I look forward to hearing from you as soon as possible.

Yours sincerely

Downloadable Resource

The download links below take you to a Google document template where you can make a copy or save in any document format you like. Note, you may have to login to your Google account.

Download – Single (for one person)
Download – Joint (for couples)

Can you come out of a DMP?

A Debt Management Plan is not a legally binding agreement, meaning you can cancel your DMP or switch DMP providers at any time. Because it is not legally binding, your creditors do not have to stick to the agreement either, although it is rare that they would change their mind. 

Before you cancel your DMP or switch it to a new DMP provider, you might want to consider the following:

  1. Will I be charged a DMP cancellation fee?
  2. Will I get a refund on any fees paid to date?
  3. How will I benefit from changing my DMP?

The first two questions can usually be answered by checking the terms of your DMP agreement. Note that DMPs that were approved over the phone or online have a 30-day cooling period where you can cancel and get 100% of the money you paid back. 

Most people will benefit from changing DMP by lowering their monthly fees. 

Where should I switch my DMP?

Try looking for a DMP service provider with lower monthly fees to free up extra money to pay back debts quicker or ease financial hardship. Debt management companies all offer different fee structures, but your best bet is to use a debt charity. The best UK debt charities will offer to set up and manage a DMP agreement on your behalf without any costs. 

How long does it take to move a DMP?

Switching a DMP will not happen overnight, which is why sending our letter template to your creditors is essential. You should expect your DMP to be switched over to your new provider within two to six weeks. 

The benefits of notifying your creditor

If you do not tell your creditor that you are switching DMP providers, and then the DMP switch causes you to miss a repayment, the creditor could decide not to honour the DMP agreement themselves and take further action. They might charge you late fees, unfreeze interest or even start enforcement action.

That’s why keeping them in the know and explaining your switch is such a good idea. Don’t forget to notify them of what’s happening and how you can both benefit by downloading our free letter template. 


Are you struggling with debt?
Are you struggling with debt?
  • Affordable repayments
  • Reduce pressure from people you owe money to
  • Stop interest and charges from soaring