Debt Management Plan

A customized plan of action.

A customized plan of action.


ou may be eligible to enroll in a Debt Management Plan (DMP). A DMP is a systematic way to pay down your outstanding debt through monthly payments to your credit counseling agency who will then distribute these funds to your creditors. By participating in this program you may benefit from reduced or waived finance charges, fees, and fewer collection calls. When you have completed your payments it may help you reestablish credit.


t takes approximately 36-60 months to repay debts through a DMP. Your accounts with creditors will always be credited with 100 percent of the amount you pay through an NCCB member agency. A DMP serves the dual role of helping you repay your debts while creditors receive the money owed to them.


or those with considerable debt problems, a financial counseling session is an effective first step to help you manage your finances better, and if appropriate, entering into a Debt Management Plan can start you on the road to financial stability.



You will work with the same credit counselor for the duration of the program. This ensures your results!

Is a Debt Management Plan right for you?

Schedule a consultation at no cost with a NCCB certified credit counselor

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Frequently Asked Questions

What is a Debt Management Plan (DMP)?

A DMP sets up a payment schedule for you to repay your debts. By voluntarily agreeing to deposit funds with your credit counseling agency each month. They send those funds directly to your creditors. If collectors call, you can ask them to contact the agency you are working with. You may also receive a reduction or waiver in finance and/or other charges. When you have completed your payments the agency will assist you in reestablishing your credit.

How will a DMP affect my credit?

  • Your participation in a DMP may change information that is already on your credit report. If your credit report reflects that you have paid creditors as agreed in the past, a DMP could have a negative impact on a creditworthiness decision by a potential creditor, landlord, or employer, because it is an indicator that you are or have experienced financial difficulties.
  • In addition, creditors may report that you are on a DMP and are not paying as originally agreed although they have accepted the reduced payment. Creditors have different credit reporting policies, and a certified consumer credit counselor can answer your questions about the possible effect on your credit rating.

But remember, the goal of the DMP is to develop a plan to ultimately improve your financial and credit standing.

If I enroll in a DMP can I continue to use my credit cards?

  • No. As a rule, your creditors will close or suspend your lines of credit. In limited cases (for example if your employer requires you to travel) one credit card may be maintained.

When you complete the DMP some creditors may reestablish your credit based on your current ability to pay and your payment history while enrolled in the plan.

Does interest stop being charged on all accounts while being enrolled in a DMP?

Your Certified Consumer Credit Counselor will be able to tell you if any of your creditors will consider stopping interest charges. However, the majority of creditors do not stop interest, but many lower the interest rate.

Can I have only the bills that are causing me problems in a DMP?

For the most effective and equitable treatment of your debts we need to include all debts in your DMP.

Connect with a NCCB Certified Credit Counselor

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