DMPs or Debt Management Plans are very helpful to some people and are sometimes the only way to get out of debt short of filing bankruptcy. DMPs are not counseling. With Debt Management Plans, you deposit money each month with the credit counseling organization.

They pay your unsecured debts according to a payment schedule they develop with your creditors. The creditors may agree to lower your interest rates or waive certain fees. Before you agree to do this, find out how long it will take to complete the plan until all of your debts are paid off. You may have to agree to not apply for or use credit until bills are paid off.

Read articles on Debt Management:

Getting Good Debt Advice

The Importance of not Avoiding Payments

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