Debt Management Plan

A Debt Management Plan (DMP) is a structured agreement between an individual and their creditors to repay outstanding debts over a set period. It typically involves working with a credit counseling agency, which helps negotiate lower interest rates or monthly payments. Individuals make a single monthly payment to the agency, which then distributes the funds to creditors according to the plan. DMPs aim to simplify debt repayment, reduce financial stress, and ultimately help individuals regain financial stability. It's important to note that while a DMP can help manage debt, it may impact your credit score.