A Debt Management Plan is a mechanism by which you can have a third party negotiate with the people to whom you owe money and set out a plan by which you will make a single, affordable monthly payment each month.
Debts that can be included in a DMT are referred to as non-priority debts and include;
- Overdrafts
- Personal loans
- Bank or building society loans
- Money borrowed from friends or family
- Credit card, store card debts or payday loans
- Catalogue, home credit or in-store credit debts
Unfortunately, some debts can’t be included in a DMT. These include;
- Court fines
- TV Licence
- Council Tax
- Gas and electricity bills
- Child support and maintenance
- Income Tax, National Insurance and VAT
- Mortgage, rent and any loans secured against your home
- Hire purchase agreements, if what you’re buying with them is essential.
- These debts are known as ‘priority debts’.
Whilst a Debt Management Plan is not specifically registered on your credit file, the fact that the implementation of a DMP will almost always be the result of you struggling to maintain (or miss previous payments to creditors) may have an effect on your credit score. However, just because you have a DMP does not necessarily restrict you from obtaining a mortgage as long as your credit history and other factors are still within parameters.
Whilst anyone can set up a Debt Management Plan, if you use a third party business then they must be properly registered with the FCA. The advantage of using a third party is that they do all the negotiating with your creditors, taking away that pain and hassle. You then pay one single agreed payment plus a once-a-month charge to your Debt Manager.
You may qualify for a Debt Management Plan if you have unsecured debt equivalent to between 15% and 39% of your annual income and you’re finding it hard to maintain repayments. It’s also usual to be on a steady income that should allow you to repay the outstanding debts over 5 years or less.
A DMP can take just a few weeks to set up and can give you the flexibility needed to repay your creditors over time.
Related articles:
- Mortgages for Customers with Bad Credit
- Use the Rental Exchange to Increase your Credit Score While Renting.
Recent posts
In September 2026, they extended this to a wider range for those moving home. Eligible homeowners looking to purchase their next property can access the delayed start mortgage, which could help with the overlap between properties, solicitor, removal, and repair costs.
Best UK Mortgage Rates this Week
Yesterday
Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.
Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
What is a Mortgage Stress Test?
3 days ago
A mortgage ‘stress test’ revolves around predicting future ‘affordability’. It is seen by many borrowers as just another hurdle to overcome, but it’s important to understand why it was introduced and who it is meant to protect.
There are several scenarios for a landlord where standard buy-to-let lending isn’t enough for their investment. For more complex properties, ownership structures, or borrowing circumstances, a specialist buy-to-let mortgage may provide options that are not available through mainstream lenders.
Leaseholders to be given extra protection
23 days ago
Housing Secretary Angela Rayner has announced a new measure to protect leaseholders in England and Wales from high fees and poorly regulated property management companies.
New first-time buyer scheme announced by Burnham
25 days ago
Saturday 26th September, Andy Burnham announced a new equity loan scheme called “Your First Home”. The scheme, which will be confirmed at next month’s budget, is aimed at first-time buyers looking to purchase a new-build property from a developer signed up to the scheme.
What Happens to My Mortgage if I Lose My Job?
28 days ago
Losing your job or finding yourself ‘between jobs’ is, unsurprisingly, a stressful place to be. Keeping a cool head and taking action is important.
Flats 40% cheaper to buy than houses
18 Sep 2026
This price gap between the cost of houses and flats is the biggest it has ever been. Houses are now costing 1.7 times more than a flat, which is 0.4 times higher than 10 years ago
Take a look at our list of houses vs. flats per area.
More information
Trusted by
