Tom's story Tom's debts became unaffordable when he was unable to work for six months because of illness. He owed almost £6,500 to five non-priority creditors. Tom lived in a rented home. He had a small amount of savings which he needed to help pay his essential living costs. Doctors told Tom that his health situation should get better, so he decided to negotiate payments with his creditors until his situation improved. He made token offers of £1 a month and most of his creditors stopped interest and charges. When Tom's health improved, he was able to return to work. He looked at his budget again and worked out new offers of payment for his debts. He also looked at his debt solutions again, but decided that negotiating with his creditors suited him best of all. Tom contacted his creditors again and told them that his circumstances had changed. He made new offers of payment and started paying the new amounts straightaway. He paid off his debts in just over three and a half years and is now debt-free. Free debt management plan (DMP) You make an affordable monthly payment to a free debt management company (DMC). The DMC negotiates with your non-priority creditors for you and shares out your monthly payments to them. What debts are Non-priority debts. included? Informal solutionIs there a minimum or No. maximum debt amount? How long will it last? You usually need to be able to repay your debts in less than 10 years. Is there a fee? Always check for fees. We recommend using a free service, such as those offered by PayPlan or StepChange. Some things to consider You need arrangements in place for any priority debts first. You may be able to change your payments if your circumstances change. A DMP aims to pay your debts in full. This may take some time. See our Debt You need to be able to pay a minimum amount to your management plans debts every month. (DMPs) fact sheet. Contact us if you want to ask about a free DMP. Page 72