A debt management plan, sometimes known as a DMP, is a slightly different approach to debt reduction. Instead of consolidating your debt, you're actually consolidating your debt payments. To put it another way, you're not paying off a bunch of old debts and replacing them with new ones; instead, you're making a single, consolidated payment that gets distributed to your creditors each month.
Using a DMP has some distinct advantages. They're normally managed by non-profit credit counseling companies, and as part of the process, you'll receive financial education. Most creditors are prepared to lower your credit card account's interest rate and waive certain late or over-limit fees in return for engaging with a credit counseling firm.
A DMP is also tailored to your financial situation, so payments must be manageable. The majority of DMPs are finished in 3 to 5 years. To begin a DMP, all you need to do is contact a reputable credit counseling service.