Debt Management Plan

A debt management plan is a program designed to help individuals pay off their debts by creating a structured repayment plan.

It is typically offered by non-profit credit counseling agencies and involves consolidating multiple debts into one monthly payment that is affordable for the individual.

The credit counseling agency works with the individual’s creditors to negotiate lower interest rates and fees, and the individual makes one monthly payment to the agency, which then distributes the funds to the creditors.

A debt management plan can help individuals get out of debt faster and avoid damaging their credit score by missing payments or defaulting on loans.

However, it is important to note that a debt management plan may not be the best option for everyone, and individuals should carefully consider their financial situation and other options before enrolling in a debt management plan.