Which Debts Can’t Be Included in a DMP? (UK Guide For 2026)

If you’re thinking about starting a Debt Management Plan (DMP) in 2026, it’s important to know that not all debts can be included. Some debts must be handled separately because they carry serious consequences if left unpaid. 

In this guide, we break down exactly which debts can’t go into a DMP, why they’re treated differently, and what you should do if you’re struggling with them. Before setting up your plan, make sure you read this article to avoid mistakes that could put your home, income, or essential services at risk. 

What is a Debt Management Plan (DMP)?

A Debt Management Plan (DMP) is an informal agreement between you and your creditors that helps you repay your debts at a more affordable rate. Instead of paying each creditor separately, you make one monthly payment to a DMP provider, who then distributes the money to your lenders.

A DMP is mainly designed for unsecured, non-priority debts. These are debts that are not tied to an asset and do not carry serious legal consequences if you fall behind. Common examples include credit cards, personal loans, store cards, payday loans, and overdrafts. Because these debts are unsecured, creditors are usually more open to accepting reduced payments or freezing interest through a DMP.

However, not all debts can be included. Priority debts and secured debts require different handling because missing payments on them can lead to more serious consequences, such as legal action, eviction, repossession, or loss of essential services. This is why only certain types of debts qualify for a DMP.

A DMP can still be a helpful solution if your financial struggles are focused on unsecured debts, giving you breathing space while you work toward becoming debt-free. 

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Common Types of Debts Excluded from DMPs

A Debt Management Plan can be useful for dealing with unsecured debts, but several types of debts cannot be included because they are classed as priority or secured. These debts carry legal or essential-living consequences if unpaid, which means they must be handled separately. 

Below is a detailed breakdown of the debts typically excluded from a DMP and why they fall outside the plan. 

1. Mortgage and Rent Arrears

Mortgage and rent arrears are always treated as priority debts. Falling behind on these payments can put your home at risk. Because a DMP is an informal arrangement and cannot offer legal protection, mortgage lenders and landlords will not accept reduced payments through a DMP. These arrears must be dealt with directly to avoid eviction or repossession. 

2. Secured Loans and Car or Vehicle Finance / Hire-Purchase Agreements

Any debt secured against an asset, like your home or vehicle, cannot be added to a DMP. With secured loans and hire-purchase or car finance, the creditor has the right to take back the asset if you fail to keep up with payments. Since a DMP doesn’t change the terms of secured credit agreements, these obligations need to be paid separately to avoid losing the property or vehicle. 

3. Council Tax, Income Tax, VAT, or Other Tax Debts

Tax debts are priority debts because falling behind can lead to enforcement action from local authorities or HMRC. This may include bailiff visits, attachment of earnings, or legal penalties. These debts must be addressed directly with the local council or HMRC and cannot be included in a DMP. 

4. Utility Bills (Gas, Electricity, Water) if Still Active or Classed as Priority

Current utility bills are essential household expenses. If they remain unpaid, there is a risk of disconnection or forced prepayment meter installation. Because of these immediate consequences, active accounts cannot be added to a DMP. However, historic arrears on accounts that are no longer active might be considered in some cases. 

5. Court Fines, Legal Penalties, and Criminal or Court-Ordered Debts

Court fines and legal penalties are enforced debts with strict consequences for non-payment. These often include further fines, court action, enforcement visits, or even imprisonment in extreme cases. Since these debts are backed by legal orders, creditors will not agree to include them in a DMP. 

6. Child Maintenance or Child Support Payments / Arrears

Child maintenance(whether arranged privately or through the Child Maintenance Service) is a priority obligation. Missing payments can result in deductions from your wages, bank account seizures, clamping or removal of your vehicle, and other enforcement actions. These debts cannot be added to a DMP, and arrears must be paid separately. 

7. Student Loans (in many cases)

Most UK student loans, especially those repaid through the PAYE system, cannot be included in a DMP. Repayments are automatically deducted from your income based on how much you earn. Because the terms are fixed and legally defined, these debts fall outside the scope of a DMP. 

8. Any Debts Secured on an Asset or Backed by Collateral

Any type of debt that uses an asset as collateral is excluded from a DMP. This includes secured second charges on a property, logbook loans, and certain types of vehicle loans. Missing payments can result in the loss of the asset, so these creditors will not accept reduced or rescheduled payments through a DMP. 

These excluded debts need special attention because the consequences of missed payments can be severe. While a DMP can help you manage unsecured debts more easily, it is important to continue paying priority debts separately to protect your home, essential services, and legal obligations. 

Why are These Debts Excluded

Debts that cannot be included in a Debt Management Plan (DMP) are excluded for a simple but important reason: they are classed as priority debts. These debts carry more serious and immediate consequences if left unpaid, and because of this, creditors usually will not agree to reduced payments through an informal plan like a DMP. 

Here’s a deeper look at why they are treated differently. 

1. They Are “Priority” Debts with Serious Consequences

Priority debts directly affect essential aspects of your life (like your home, your income, your legal status, and essential household services). Missing payments on these debts often leads to serious outcomes such as:

• Repossession of your home if mortgage or secured loan payments fall behind.
• Eviction if you fail to pay rent.
• Utilities being disconnected if you miss ongoing gas, water, or electricity bills.
• Court action or enforcement visits, including bailiffs, if you fall behind on council tax, fines, or tax debts.

Because the consequences are so severe and can happen quickly, these debts need to be paid before any others. They cannot be handled through a DMP, which focuses only on debts with less immediate risks. 

2. DMPs Are Informal: Priority Creditors Rarely Agree to Them

A DMP is not a legally binding agreement. It relies on creditors voluntarily accepting reduced payments.
Priority creditors (such as HMRC, councils, courts, landlords, and mortgage lenders) almost always require payment in full and on time because of the serious nature of the debt.

They generally do not:

• Freeze interest 
• Stop enforcement action 
• Accept lower repayment offers via a DMP provider 

This is why these debts cannot simply be placed into a DMP and treated the same as credit cards or personal loans. 

3. Including Priority Debts Could Put Your Home, Services, or Legal Obligations at Risk

If priority debts were included in a DMP, you could end up underpaying bills that are essential to your safety and stability. This could put you at risk of:

• Losing your home.
• Losing your vehicle.
• Breaking a legal obligation.
• Facing enforcement or court penalties.
• Getting services like energy or water cut off.

A DMP is designed to ease pressure without compromising your core living needs. Excluding priority debts ensures those critical payments remain up to date, while your unsecured debts are handled in a more manageable way through the plan. 

These exclusions help protect you from serious consequences and ensure you remain safe, housed, and legally compliant while tackling your other debts more gradually. 

Common Misunderstandings & Grey Areas

When setting up a Debt Management Plan (DMP), many people assume that all unsecured debts can be included. But that isn’t always the case. Some situations fall into grey areas where creditor policies, account status, or how the debt is structured can affect whether it qualifies. 

Here are the most common misunderstandings you should be aware of: 

1. Some Unsecured Debts or Older Arrears May Not Always Be Accepted

Even though a DMP is designed for unsecured debts, there are exceptions. Certain types of arrears or older debts may be included only at the creditor’s discretion. Examples include:

• Old gas, electricity, or water arrears from accounts that are no longer active.
• Benefit overpayments, which may be recoverable through deductions from wages or benefits.
• Old housing arrears that have been passed to a debt collector.
• Previous tenancy debts after moving out.

Some creditors are flexible, while others refuse to join a DMP and may still pursue repayment directly. This means that inclusion is not guaranteed even if the debt appears unsecured. 

2. Joint Debts or Co-Signed Loans Aren’t Always Straightforward

Joint debts or agreements with a guarantor can be complicated. Whether they can be included depends on how the debt is structured. For example:

• A joint loan means both parties are fully responsible for the entire balance. Even if you enter a DMP, the lender may pursue the other person for full payment. 
• Guarantor loans can be difficult because the lender may reject reduced payments and instead chase the guarantor. 
• Shared accounts (like overdrafts on joint bank accounts) may still need separate arrangements for the other account holder. 

These debts can sometimes be added to a DMP, but doing so doesn’t protect the other person from being contacted or held responsible. 

3. Creditors Are Not Required to Accept a DMP, even for Unsecured Debts

A key misunderstanding is believing that unsecured creditors must accept reduced payments through a DMP. In reality, a DMP is voluntary, not legally binding. Creditors can choose to:

• Accept the reduced payments.
• Reject the plan.
• Continue charging interest and fees.
• Pursue collections or legal action.

Most lenders cooperate, but there is no guarantee. This is why it’s important to have a DMP provider who communicates clearly with creditors and helps negotiate agreements wherever possible. 

These grey areas highlight why reviewing each debt carefully is crucial before setting up a DMP. Not all unsecured debts behave in the same way, and understanding the exceptions can help you avoid surprises later on. 

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What to Do About Debts That Can’t Be Included in a DMP

If some of your debts can’t be included in a Debt Management Plan, it’s important to deal with them carefully. Priority and secured debts need to be managed differently because the consequences of missing payments can be serious. Here’s what you should do to stay protected and keep your finances under control.

• Keep Paying Priority Debts Separately: Priority debts like rent, mortgage payments, council tax, child maintenance, and active utility bills must be paid outside your DMP. Missing these payments can lead to eviction, repossession, enforcement action, or service disconnection. 
• Look at Other Solutions for Priority or Secured Debts: If you’re struggling with debts that can’t go into a DMP, you may need a different approach. This could include negotiating directly with the creditor or considering formal UK debt solutions (explained later in the article). 
• List All Debts Before Starting a DMP: Before your DMP begins, make a full list of Unsecured debts you can include (credit cards, personal loans, overdrafts) and Priority/secured debts you must handle separately (mortgage, car finance, tax debts, court fines, child maintenance). 

Keeping them separate helps your DMP provider build a realistic plan while making sure your essential bills stay up to date. 

Sample Checklist: Are your debts eligible for a DMP?

Use the quick checklist below to see where your debts fall. This makes it easier to plan your payments properly and avoid missing any priority commitments:

How to Use This Checklist

• If your debt falls under the eligible column, it can usually be added to a DMP and repaid through one affordable monthly payment. 
• If your debt is listed in the not eligible column, you must continue paying it separately to avoid serious consequences such as eviction, repossession, or enforcement action. 
• If you’re unsure where a debt fits, especially old arrears, benefit overpayments, or joint debts, your DMP provider or a debt advisor can help clarify your options. 

This checklist helps you clearly separate your debts so you can manage your finances safely while your DMP takes care of the unsecured debts that qualify. 

What Should I Do If My Debts Are Huge And I Cannot Afford To Settle Them?

Sometimes, it may be difficult to agree on a payment plan with your creditor or debt collection agency, particularly if the payments are financially overwhelming.

In such cases, you might want to explore potential debt solutions in the UK. There are several options available in the UK, each with its own eligibility criteria. Choosing the right option can help resolve your debt issues, but the wrong one may make your financial situation worse.

However, it is essential to seek professional advice before committing to any debt solution. A debt advisor can help you assess your situation and guide you in selecting the most appropriate option.

Some of The Key Debt Solutions Available in England, Northern Ireland, and Wales:

• Individual Voluntary Arrangement (IVA): A formal agreement where you make regular payments to creditors over 5 or 6 years. The remaining debt may be written off, but this solution has strict criteria.
• Debt Relief Order (DRO): Designed for individuals in severe financial distress, this option freezes interest and allows a year of no payments, potentially leading to debt resolution.
• Bankruptcy:  A formal legal process that can clear most debts if you are unable to repay them. Bankruptcy provides a financial reset, but it also has serious long-term consequences, including restrictions on your financial affairs and potential asset loss.

Debt Solutions Available in Scotland

1. Protected Trust Deed: A formal agreement to repay part of what you owe over four years. The remaining debt may be written off afterward. It is legally binding and affects your credit rating.
2. Debt Arrangement Scheme (DAS): A government-backed scheme allowing you to repay your debts through a Debt Payment Programme (DPP) based on what you can afford. Interest and charges could be frozen, and creditors can’t take legal action.
3. Sequestration (Scottish Bankruptcy): A formal insolvency process where most debts may be written off, but assets may be sold to repay creditors. It offers a fresh start but comes with serious consequences.
4. Minimal Asset Process (MAP): A simplified form of bankruptcy designed for individuals with low income and few assets. It allows eligible debts to be written off after six months, provided the individual fully cooperates with the process. However, in practice, the process may take longer depending on the complexity of the case. MAP also offers lower fees and reduced administrative burden compared to full bankruptcy.

Caution: These debt solutions have both advantages and drawbacks, so it’s important to carefully weigh your options before making a decision.

Furthermore, if you are unsure which debt solution suits your situation, speak to a professional debt advisor. Free, independent advice services like MoneyHelper can help you assess your finances and find the best option for you.

Final Thoughts

A Debt Management Plan can be a powerful tool for easing the pressure of unsecured debts, but it’s not a one-size-fits-all solution. Knowing which debts cannot be included is essential because priority and secured debts must always be handled separately to protect your home, income, and essential services. 

If you’re planning to start a DMP in 2026, take time to list every debt you owe, separate the priority debts, and make sure they are paid on time while your DMP covers the rest.

If some of your debts fall outside the scope of a DMP, don’t panic because there are other UK debt solutions that may suit your situation better. The key is to get proper advice before committing to anything. Speaking with a free, qualified debt advisor can help you understand your options and choose the safest, most effective path forward.

By approaching your debts with the right information and support, you can avoid serious consequences and take confident steps toward financial stability. 

Key Takeaways

• A DMP can only include unsecured, non-priority debts such as credit cards, personal loans, overdrafts, and store cards. 
• Priority and secured debts cannot be added because they carry serious consequences like eviction, repossession, or legal action. 
• Mortgage, rent arrears, and secured loans must be paid separately to protect your home and avoid enforcement. 
• Tax debts, council tax arrears, and HMRC debts are excluded due to strict enforcement powers and legal obligations. 
• Court fines, legal penalties, and child maintenance arrears cannot go into a DMP, as these require full, ongoing payment. 
• Active utility bills must be kept up to date, although old arrears from closed accounts may sometimes be included. 
• Student loans (most types) cannot be added, especially those repaid through PAYE. 
• Creditors are not legally required to accept a DMP, even for unsecured debts, making cooperation voluntary.  
• Some debts fall into grey areas, such as benefit overpayments, joint debts, or guarantor loans, which may require individual arrangements. 
• If your debts are unmanageable, alternative solutions like IVAs, DROs, bankruptcy, DAS, or Trust Deeds may be more suitable. But always seek professional debt advice first. 

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