Debt Management Plans (DMP)

A Debt Management Plan (DMP) is an organized agreement between a person with multiple debts and a credit counseling organization. It helps individuals repay their debts at a controlled, manageable pace by consolidating payments into a single, monthly amount. The counselor negotiates with creditors to potentially reduce interest rates or fees, making repayment easier. This plan typically lasts several years, aiming to clear debts gradually while avoiding further borrowing or penalties. A DMP provides a structured path toward financial stability, offering support and guidance throughout the repayment process.