Debt Management Plans
A debt management plan may help you organize eligible unsecured debts into one monthly payment and potentially reduce interest rates or fees. Learn how these plans work, what they may cost, and how they compare with other debt-relief options.
Answer once. See Debt Management, settlement, consolidation, bankruptcy, and self-payoff options together.
- One organized monthly payment
- Possible interest-rate reductions
- A structured repayment timeline
What Is a Debt Management Plan?
A debt management plan, often called a DMP, is a structured repayment arrangement commonly administered by a credit counseling organization. You make one monthly payment to the organization, which then distributes the money among participating creditors. Creditors may agree to reduce interest rates or waive certain fees, but you usually repay the full principal balance.
Read the complete guide to how debt management worksHow Debt Management Works
Your income, expenses, debt balances, account status, and monthly affordability are reviewed.
Participating creditors may offer revised interest rates, waived fees, or adjusted monthly payments.
The plan administrator distributes your payment among the creditors included in the plan.
You continue making payments until the participating debts have been repaid under the agreed terms.
Debt management plans commonly take several years and require consistent monthly payments.
Could Debt Management Fit Your Situation?
- Most of your problem debt is unsecured
- High interest rates are slowing your progress
- You have stable monthly income
- You can repay the principal balance
- You want a structured payment plan
- You do not need immediate legal protection
- Your regular expenses exceed your income
- The proposed payment is unaffordable
- Most of your debts are secured
- You are facing garnishment, foreclosure, or a lawsuit
- You need substantial debt reduction
- Your income is unstable
We will ask about your debts, income, expenses, and goals, then show where Debt Management may fit alongside other options.
What Debts Can Be Included?
- Credit cards
- Store credit cards
- Some unsecured personal loans
- Some medical bills
- Certain collection accounts
- Mortgages
- Auto loans
- Most student loans
- Tax debt
- Child support
- Other secured or court-ordered obligations
Eligibility and creditor participation vary by provider, creditor, account status, and state.
Debt Management at a Glance
- Do you usually repay the full debt?
- Yes
- Can interest rates be reduced?
- Sometimes
- Can fees be waived?
- Sometimes
- Is this a new loan?
- No
- Are enrolled credit cards often closed?
- Yes
- How long can repayment take?
- Often several years
- Can setup or monthly fees apply?
- Yes
These are general characteristics. Actual terms vary by creditor, counselor, and situation.
See How Debt Management Compares for You
Instead of using a separate calculator for every debt-relief option, answer a guided set of questions once. AskSteveFirst uses your information to compare Debt Management with your other possible paths and explain the tradeoffs.
- One guided assessment
- Multiple debt-relief options compared
- Personalized estimates based on your answers
This is not a standalone debt management calculator. Your answers are used to estimate Debt Management and compare it with settlement, consolidation, bankruptcy, and self-payoff strategies.
No phone number or email required to begin. You can review and change your answers at any time.
How Debt Management Compares
Structured repayment with possible creditor concessions
- Repays full?
- Usually
- New loan?
- No
Replaces debts with new financing
- Repays full?
- Yes
- New loan?
- Yes
Repay creditors directly using your own strategy
- Repays full?
- Yes
- New loan?
- No
Debt Management Guides
More Debt Management guides are on the way. Check back soon.
Common Questions About Debt Management
Compare Debt Management With Your Other Options
Debt Management may be worth considering, but it should not be evaluated in isolation. Complete one private assessment to compare estimated payments, timelines, eligibility factors, and important tradeoffs across your available options.