DMP (Debt Management Plan)

A Debt Management Plan (DMP) is an organized agreement between a person and their creditors to repay debts over time. Usually facilitated by a credit counseling agency, the borrower makes a single, affordable monthly payment to the agency, which then distributes the funds to creditors. The plan aims to reduce interest rates and stop collection calls, helping the individual pay off debts without declaring bankruptcy. DMPs are suitable for people with multiple unsecured debts struggling to meet payments, providing a structured path to financial recovery while maintaining consumer rights and transparency.