Debt Management Plan (DMP)

A Debt Management Plan (DMP) is a structured repayment program designed to help individuals manage their debt more effectively. It involves working with a credit counseling agency to consolidate your unsecured debts, like credit cards, into one manageable monthly payment. The agency negotiates with creditors to potentially reduce interest rates and fees. By following the DMP, you make consistent payments over a set period, typically three to five years, eventually leading to debt relief. This helps individuals regain control of their finances and work towards becoming debt-free in a more organized and supportive way.