Debt Management Plans (DMPs) Explained
A debt management plan consolidates your payments through a nonprofit credit counseling agency rather than a new loan. The agency negotiates lower rates with creditors, and you make one monthly payment that gets distributed on your behalf.
A nonprofit credit counselor negotiates lower interest rates with your existing creditors
You make one monthly payment to the agency, which distributes it to creditors
No new loan or credit check required — it's not a loan product
Typically runs 3-5 years and requires closing enrolled credit cards
Read the full breakdown at Credit Counseling vs. Debt Settlement.