What Debt is Eligible for a Debt Management Program? 

If you’re carrying more debt than feels manageable, it’s natural to wonder whether a debt management program can help, and which debts actually qualify. The short answer: most debt management programs focus on unsecured debt, such as credit card balances, medical bills, store cards, and some personal loans.

Other debts, like mortgages, auto loans, tax debt, and court-ordered payments, are usually handled separately. Understanding what debt is eligible for a debt management program can help you feel more confident about your next step and avoid wasting energy on options that may not fit your situation.

Below, we’ll walk through the common types of debt that may qualify for a debt management program, the debts that typically can’t be included, and how nonprofit credit counseling can help you build a repayment plan around your full financial picture.

What Debts Qualify for a Debt Management Program?

When people search for types of debt eligible for debt management, they’re usually asking about unsecured debt, which is debt not secured by collateral and is often considered eligible debt for a DMP.

In other words, there are no assets backing this debt that the lender can seize if you don’t pay. This is also why we refer to unsecured debt as non-priority debt.

Here are common types of debt that may be eligible for a debt management program, along with different types of debt that are usually excluded.

Credit Card Balances

Yes. If you’re wondering, “can credit card debt be included in a debt management program?” credit card balances are among the most common debts included in a debt management program.

Credit cards can be helpful in a pinch, given their revolving nature. But purchases can add up quickly—that’s why credit card debt can be so debilitating. It can be especially hard to pay down your credit card balances when APRs are surging, averaging between 20% and 27%. No wonder nearly half of credit card holders carry a balance.

Through a DMP, credit card balances are typically consolidated into a structured repayment plan with reduced interest charges (depending on creditor agreement). This means more of your monthly payment goes toward the principal rather than being eaten up by interest chargesinterest charges.

Over time, this structure makes it possible to break the cycle of minimum payments and steadily work down balances until you’re debt-free.

Medical Debt

Yes. If you’re wondering, “can medical debt be included in a debt management program?” medical debt can often be included, though eligibility can vary by provider and creditor.

Many of us have been there: after a doctor or hospital visit, you get that unreasonably high medical bill in the mail, and there’s no way you can pay it all off at once.

Fortunately, medical bills may be addressed through a DMP, though not all providers include medical debt. GreenPath does.

It’s not surprising that medical debt can actually contribute to medical problems. Rolling medical debt into a DMP not only helps you regain control of your finances but also creates space to focus on recovery and health without the constant worry of collection calls or growing balances.

Store Cards and Retail Financing

Store cards and retail financing can be easy to open at checkout, but the balances can become harder to manage over time—especially if interest charges, deferred-interest promotions, or multiple payment plans start stacking up.

These debts are often treated similarly to credit card debt and may be eligible for a DMP, depending on the creditor and provider.

Buy-now-pay-laterBuy-now-pay-later plans can feel similar because they’re tied to retail purchases, but eligibility may vary by provider and account type. If BNPL payments are part of your debt picture, a credit counselor can help you understand whether they can be addressed through a DMP or managed alongside one.

What Debts Cannot Be Included in a Debt Management Program?

Now let’s talk about what debts cannot be included in a debt management program, including secured debts and other obligations that are generally not eligible debt for a debt management program.

Secured debts are backed by collateral and are not usually covered in a debt management program. Naturally, these should be your priority debts, since not paying them can lead to serious consequences—like repossession of the property backing the debt.

Mortgage

Housing is the biggest expense for most people, and mortgages are often one of the largest debts households carry.

And because it’s a basic need, it should be first in your budget. Missed payments can result in an eviction or foreclosure.

That said, we understand housing is more expensive than ever. “The affordability challenge is particularly severe for households of color and for low-income communities,” says a report from the U.S. Department of the Treasury.

If you’re struggling to make your mortgage payment, our supportive counselors here at GreenPath are here for you. Explore our housing services for homeowners or renters.

Auto Loans

The next most important debt is your car payment, so you can maintain your transportation.

Car repossession is a real risk if payments are missedpayments are missed. Car leases may also fall into this category.

Even still, a Nasdaq article reports “Americans are spending a record amount of money on monthly car payments.”

A debt counselor can help you look at options such as restructuring your budget, negotiating with your lender, or identifying ways to free up cash flow so you can keep your vehicle. Since reliable transportation is often tied to your job and daily responsibilities, protecting your car loan is a key part of achieving overall financial stability.

Child Support, Alimony, and Other Legal Judgments

As these are court-ordered obligations, non-payment can lead to legal penalties including wage garnishment, license suspensions, and even jail time.

For these reasons, these can’t be negotiated or delayed via a DMP and are generally not considered eligible debt.

That said, if these obligations are creating strain on your budget, free financial counselingfree financial counseling can still help. By addressing other eligible debts through a DMP, you may be able to free up more income to stay current on court-ordered payments.

Having a plan in place can relieve some financial pressure and make it easier to manage these unavoidable responsibilities.

Student Loans

Due to rising tuition costs and other factors, student loan debtstudent loan debt is a major source of consumer debt.

We know it can cause significant hardship—especially now that collections have resumed as of 2025.

Federal student loans are usually excluded from DMP eligibility, but some private student loan providers may work with DMPs.

Even if your loans can’t be added to a DMP, talking with our NFCC-certified counselors can help you evaluate repayment strategies, consolidate information from different services, and build a plan that fits your income. Having guidance can ease the stress of navigating complex loan rules and help you avoid default.

Tax Debt

Sometimes we complete our tax returns in hopes of a refund—only to discover we owe the government money.

Unfortunately, federal and state tax debt can’t be included in a DMP and is not eligible debt for this type of program. However, the IRS offers help for taxpayers who can’t pay in full, which includes long-term and short-term payment plans.

There’s also the “offer in compromise” option, which allows you to settle your tax debt for less than the amount you owe.

While it can feel overwhelming to owe the government, having a structured plan in place—paired with relief on other debts through a DMP—can make repayment more manageable.

Special Cases: Collection Accounts and Personal Loans

Collection Accounts

Some of your older debts may have already been sent to collections. These can sometimes be included in a DMP, but eligibility depends on the debt type and whether the collector works with counseling agencies.

It can really help to have a DMP provider work with creditors. While a DMP can be very effective at stopping collection calls, there are additional strategiesadditional strategies to consider as well.

When collection accounts are accepted into a DMP, it often reduces the pressure of constant calls and letters from collectors. By consolidating payments into one plan, you create a clear path forward that shows you’re taking steps to resolve the debt.

Personal Loans

These are loans, usually from a bank or credit union, that are not tied to a specific asset (like your house or car).

They may be eligible for a DMP if they are unsecured, depending on the creditor’s criteria. In many cases, whether personal loans qualify for a debt management program is determined on a case-by-case basis.

It’s also worth mentioning payday loans here. Since these are short-term loans meant to be repaid by your next paycheck, they may or may not be eligible for a DMP, depending on the provider. Payday loans can be especially tough on finances because of steep interest rates and fees, so make sure you understand the risks before taking one out.

GreenPath Can Help You Manage Debt

As a nonprofit credit counseling agency, GreenPath Financial Wellness has helped consumers manage and repay billions in debt since 1961. If credit card debt, medical debt, or other eligible unsecured debt is part of your financial picture, a Debt Management Program (DMP)Debt Management Program (DMP) may be one option to consider.

A financial counseling session can help you understand what debts qualify for a debt management program, identify debts that may not be eligible, and decide whether a structured repayment plan fits your needs. From there, you can review your options and build a plan that reflects your goals, obligations, and budget.