Renting with a Debt Management Plan: Costs and Credit Checks
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This information and enquiry service is not a full financial assessment or a guarantee of suitability or debt write-off. Debt solutions are not suitable for everyone. Fees may apply, and your credit record and assets may be affected. Get advice on your circumstances before choosing a solution.
MoneyNerd introduces enquiries to The Debt Advice Service and may receive a referral fee. For free, independent guidance and help finding a debt adviser, visit MoneyHelper.
This information and enquiry service is not a full financial assessment or a guarantee of suitability or debt write-off. Debt solutions are not suitable for everyone. Fees may apply, and your credit record and assets may be affected. Get advice on your circumstances before choosing a solution.
A DMP does not create a general legal ban on renting, but affordability, references and any adverse public credit records can affect an application.
In this guide, we’ll cover:
- How a DMP might affect your current tenancy
- The impact of a DMP on finding a new place to rent
- Including rent arrears in a DMP
- The possibility of writing off some debt
- Your rights when a landlord refuses to rent to you because of a DMP
Keep a clear record of your debts, income and essential costs. Free independent debt advice can help you compare the options available where you live.
Don’t worry, this guide aims to answer your questions and give you clear advice.
Can Rent Arrears be Included in a Debt Management Plan?
A DMP normally covers suitable non-priority unsecured debts. It is informal and does not protect you from the consequences of rent arrears.
Examples of unsecured debts include credit card debts, personal loans, catalogue debts, etc. Unsecured debts can be defined as debts that have not been “secured” against any valuable asset of yours.
Rent arrears are normally unsecured, but they are a priority debt because they can threaten your home. They are not secured borrowing merely because they relate to a property.
Deal with rent and rent arrears separately as priority commitments before calculating the amount available for a DMP.
If you opt for a debt management plan, then you will have to keep making your rent payments separately from your DMP. Your rental payments will be considered to be essential expenses when your DMP’s payment plan is being drafted.
Priority rent arrears need attention before non-priority debts such as credit cards. Seek housing advice promptly if your landlord threatens possession.
DMP Comparison
A DMP normally covers non-priority unsecured debts. Other debt solutions have different eligibility and effects; unsecured does not mean non-priority.
To provide a clearer picture of these differences, I’ve put together a table comparing a debt management plan with other available options.
| DMP vs Alternative Solutions | How It Can Help Tackle Debt | Suitable For Individuals… |
|---|---|---|
| Debt Management Plan (DMP) | An informal agreement to pay back non-priority debts in a more manageable way, but does not write off any debt. | …seeking a flexible arrangement without legal proceedings. |
| Debt Relief Order (DRO) | A formal solution that freezes debts for a year, after which they may be written off. | England and Wales: people meeting the current £50,000 qualifying-debt limit and strict income, asset, vehicle and residence conditions. Homeowners are not eligible. A debt adviser must assess eligibility; other UK nations have different rules. |
| Individual Voluntary Arrangement (IVA) | A formal agreement that may write off eligible unpaid debts on successful completion. Duration, payments and fees depend on the agreed proposal. Credit rating will be negatively affected. Home ownership and equity must be assessed under the proposal; keeping your home is not guaranteed. | …with a larger amount of debt who can commit to a fixed repayment plan and want to avoid bankruptcy. |
| Bankruptcy | A formal legal process that writes off most debts but has significant consequences, including potentially losing your home and negatively impacting your credit rating and job prospects. | … with significant debts that cannot realistically pay them off. More severe option with substantial consequences. |
| Consolidation Loan | A consolidation loan involves taking out new credit to pay off existing debts. It can simplify payments and potentially reduce interest rates. But, you could also end up paying more interest overall. | .. with multiple debts looking to consolidate into a single payment, usually with a good credit score to obtain favourable terms. |
| Payment Holiday | Payment holidays offer short-term relief by pausing or reducing payments. Payment holidays don’t reduce the total debt amount and are usually for a short duration. | ..with short-term financial difficulties needing temporary relief from debt payments. |
| Equity Release | Equity release involves homeowners releasing equity from their property. It provides a lump sum or additional income by using the home’s value but reduces the property’s equity. | Eligible homeowners considering property-based funding after specialist advice. Costs, estate reduction, benefits and future care needs must be assessed; it is not a general recommendation for debt repayment. |
| Informal Negotiation | Informal negotiation is not legally binding and involves negotiating with creditors for better terms. | …with debts and wish to negotiate terms independently and prefer to have a flexible, non-binding arrangement with creditors. |
Get free debt advice to compare options for your country and circumstances. A table cannot confirm suitability.
Will My Current Residential Status be Affected Due to a DMP if I’m Living in a Rented Space?
A DMP does not automatically end an existing tenancy. Continue paying rent and check the tenancy terms; rent arrears or other lawful grounds can still lead to possession proceedings.
As mentioned earlier, the payments you make towards your monthly rent are considered to be essential expenses in the eyes of your DMP provider.
This means that when your DMP’s payment plan is being written, some budget is set aside to help you pay your monthly rent payments.
Setting aside rent in the budget does not guarantee you will always be able to pay it. Ask for a review immediately if income falls or housing costs rise.
That being said, you’re going to have to calculate how much money you have leftover to pay towards your DMP after you’ve made the payment towards your rent.
There’s a possibility the money you have leftover after you’ve attended to your priority payments (including rent) might be so low that your creditors might not accept your DMP.
This is something that you’re going to have to discuss thoroughly with your DMP provider before you present the payment offer to your creditors.
StepChange and PayPlan provide free debt advice and DMPs. StepChange is a charity; PayPlan is not, although those services are free. See related guidance, related guidance.
Check the adviser’s relevant permissions or legal status and any fees. For a threatened eviction, also seek specialist housing advice. See related guidance.
Understand your debt options
MoneyNerd can introduce you to The Debt Advice Service for free debt advice. MoneyNerd does not provide debt advice or recommend debt solutions.
The Debt Advice Service can explain your options, including their benefits, costs and risks. Options available depend on your circumstances. There’s no obligation to take a debt solution.
MoneyNerd does not provide debt advice or recommend debt solutions. The Debt Advice Service is a trading style of Pacific Financial Solutions Limited. If you request an introduction, we’ll share your details with their team so they can contact you.
Some debt solutions have fees and may negatively affect your credit rating. MoneyNerd is a commercial introducer and may receive a fee if you go ahead with a debt solution through The Debt Advice Service.
For free, impartial money guidance and help finding free debt advice, visit MoneyHelper.
The Landlord isn’t Letting Me Rent a Property Because of My DMP. What Should I Do?
If your landlord is being difficult about letting you rent a house due to your DMP, there are a couple of things that you can do.
Firstly, producing a guarantor can be a very effective way of securing a rented space for yourself.
A guarantor agrees to meet the liabilities described in a guarantee, potentially including rent, arrears or other costs. They should understand the scope and obtain advice before signing.
Your guarantor can be anyone such as a parent, family member or close friend.
A landlord may consider a suitable guarantor, but a good score alone does not guarantee acceptance. The guarantor’s actual obligation depends on the agreement.
Do not offer an unlawful larger deposit. For covered private tenancies in England, the security deposit is capped at five weeks’ rent where annual rent is below £50,000, or six weeks where it is £50,000 or more. Other UK nations have different rules. See related guidance.
A security deposit is different from rent in advance. Under the England rules from 1 May 2026, rent must not be requested or accepted before signing; after signing and before the tenancy starts, the usual maximum is one month for monthly rent, subject to specified exceptions.
Ask a housing adviser about lawful deposit support, a guarantor and references. Do not use money needed for essentials or DMP payments without reviewing your budget.
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Can I Find a New Space to Rent?
Yes. While it’s not impossible to find a new space to rent during a DMP, there’s a chance you may run into some difficulties.
This is because the reduced payments you make as part of your debt management plan have a negative impact on your credit rating.
A lender’s full credit report can show reduced-payment arrangements or defaults. A normal landlord or tenant-reference credit check generally uses public information, such as CCJs and insolvency records, rather than your full credit-account payment history.
A DMP is not itself a public insolvency entry. Different checks and information you supply, such as bank statements, may reveal affordability concerns; ask what is being checked.
When you apply to get a new space to rent, the landlord might perform a credit check on you.
While there’s no legal law that states that someone with a DMP can’t rent a property, there’s a chance that you’ll run into difficulties because of the landlords and the credit check they might perform on you.
A landlord may consider income, references and relevant credit information. A DMP itself is not normally visible as an insolvency entry on a standard tenant check.
An application can therefore depend on the whole affordability and referencing assessment, not simply the label “DMP”.
Provide accurate information and evidence of affordable rent and reliable payments where available. A guarantor may help if the landlord accepts one, but no outcome is guaranteed.
A DMP is a way of addressing financial difficulty, not proof of poor character or a lack of discipline.
References
