Debt included in a DMP

What debt can be included in a DMP?

As a way of reducing monthly repayments to debt, Debt Management Plans (DMPs) are becoming an increasingly popular option. Many find them to be a flexible solution as it allows for an increase in monthly repayments if and when circumstances change. It also allows homeowners to keep their homes.

However, as a DMP is not a legally binding agreement between the debtor and creditors, not all debts can be included. Debt that CAN be included will generally be any unsecured debt (i.e. not secured on a property or asset).

Credit & Store Card

Credit & Store cards are possibly the most common forms of unsecured debt that are included within a DMP. Many individuals that are in financial difficulty will find themselves paying off the monthly debt from one card with another, thus increasing the amount of debt owed.


Overdrafts are common with many bank accounts, and are often utilised towards the end of the month to tide individuals over until payday. However this can become a vicious cycle with the overdraft charges being regularly applied. If an overdraft is included in a DMP, it will be necessary to open an account at a different bank.

Personal Loans

There are many reasons why an individual may have taken out a personal loan, from home improvement, a holiday or even to consolidate other debt. Provided the loan is not secured against anything such as a property, then it may be included within a DMP.

Payday Loans

These have recently become a very popular way of getting to the end of the month if things are tight. As a one off, and assuming they are repaid immediately, they can be useful, however the interest rate is often staggeringly high, and if they are not repaid, the total debt can increase very quickly.

These are just some of the types of unsecured debt that can be included within a DMP. As with any debt solution, it is important to discuss the situation with a debt management company, money advisor or Insolvency Practitioner to establish which is the best option available.