The Pros and cons of a Debt Management Plan

Making the final decision

For many people, a Debt Management Plan is an effective and smart solution if they can afford to pay at least $5 per month and can pay back existing debt within 10 years. It’s worth quickly reviewing the pros and cons.


  • Your monthly outgoings will be reduced.
  • You only need to make one payment to your DMP provider.
  • Your debt will be paid off in a set time.
  • You may be paying less interest and fewer charges.
  • You’re not tied to a DMP. If your circumstances improve you can opt out and choose a payment plan that is faster.


  • It will take longer to pay off your debt because each creditor is getting less each month.
  • Your credit rating will be affected.
  • If you miss a payment your creditors are free to make direct contact with you again

If you’ve taken all these points into consideration and you want to go ahead with a DMP, all that remains is to choose the provider that best suits you.

How to choose a DMP provider

You can find a DMP provider through various channels:

  • Contact MyCashOnline team.
  • Ask your local Citizens Advice Bureau
  • Search for ‘debt management companies’ on Google
  • Look in the Yellow Pages under ‘debt management’.
  • If you’ve already spoken to an adviser, ask them for a recommendation.
  • Ask friends who already have a DMP.

You should be aware that many DMP providers do charge a fee.

A debt management plan can be a great way to get your debt under control and your finances back on track. It’s a flexible option that can be altered to suit your changing circumstances.



*Disclaimer & Example: For our Small Loans of $2,000 or less, an APR (Annual Percentage Rate) doesn't apply. These loans are fee-based only with a term between 62 and 180 days, and so the APR is 0%. The establishment fee is 20% of the amount borrowed and the monthly fee is 4% of the amount borrowed. Representative example: a loan of $1,000 repaid over 3 months equates to a total amount payable of $1,320 comprised of $1,000 principal (amount borrowed), $200 establishment fee and $120 in monthly fees. The maximum comparison rate on loans between $300 and $2000 is 199.43%.
For our Medium Loans between $2,100 and $5,000, with a term between 2 months and 12 months, the maximum Annual Percentage Rate (APR) is 48% (Comparison rate 65.6597% p.a.) and there is a $400 Establishment Fee. A Medium Loan of $3,000 borrowed over 1 year would equate to a total amount payable of $4,289 (including a $400 establishment fee).

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR %). The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

© 2023 Owned by Australian Synergy Finance Pty Ltd, ABN 54 613 655 646. Australian Credit Licence 490422. The information on this webpage is general information only and does not take into account your objectives, financial situation or needs.