What is a DMP?

A debt management plan (DMP) is a mutual agreement between you and a credit counseling agency (CCA). Simply put, you agree to repay your unsecured debts in full over time, without taking on any more debt. In return, most creditors will agree to significantly reduce your interest charges and waive any late fees^*.

Even though DMPs are often referred to as "debt consolidation," there is a difference. While DMPs consolidate your monthly payments into one, easy payment, they are NOT debt consolidation loans.

What are the benefits of a DMP?

^{* Typically benefits are granted after the first 3 consecutive payments.}