The Best Debt Management Plans
On February 25, 2026 By newsroom Topic: Debt Advice
What is a Debt Management Plan (DMP)?
- Definition: A debt relief program where credit counseling agencies help consolidate and manage unsecured debts (e.g., credit cards, personal loans).
- Timeline: Typically completed in 3 - 5 years.
- Benefits:
- Reduced interest rates or payments.
- Single monthly payment.
- Potential long-term improvement in credit score if payments are made on time.
- Exclusions: Secured debts (e.g., mortgages, car loans) and federal student loans.
How Debt Management Plans Work
- Financial Consultation: Free session with a counselor to assess your debt situation.
- Enrollment: Choose debts to include; unsecured debts like credit cards are common.
- Payments: Make one monthly payment to the agency, which distributes it to creditors after deducting fees.
- Negotiations: Agency may negotiate with creditors to lower interest rates or fees.
- Completion: Pay off debt within 3 - 5 years; benefits may be void if payments are missed.
Alternatives to DMPs
- Debt Consolidation Loan: Requires stable income; good credit yields better terms.
- Balance Transfers: Ideal for credit cards but requires disciplined repayment.
- DIY Methods:
- Avalanche: Pay high-interest debts first.
- Snowball: Pay smallest debts first for motivation.
- Home Equity Loan: Riskier option as it puts your home at stake.
- Debt Settlement: May damage credit and should be a last resort.
Top DMP Providers
- Money Management International (MMI)
- Fees: $33 enrollment; $25/month (average).
- Pros: Low fees, no debt minimum, nationwide service.
- Cons: Credit cards in DMP are closed, temporarily affecting credit scores.
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Best For: Low fees and broad accessibility.
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GreenPath Financial Wellness
- Fees: $0 - $50 enrollment; $0 - $75/month.
- Pros: Multilingual support, virtual services nationwide, strong customer service.
- Cons: Unclear debt minimum; limited physical office availability.
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Best For: Excellent customer service.
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Apprisen
- Fees: Up to $45 enrollment; $45/month max.
- Pros: Low fees, accepts debts as low as $100, nationwide.
- Cons: Limited in-person support; AI customer service.
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Best For: Low debt minimums.
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InCharge Debt Solutions
- Fees: $75 enrollment max; $33/month (average).
- Pros: Military-specific resources, HUD and EOUST certified.
- Cons: Limited to 16 states; $1,000 debt minimum.
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Best For: Military members and veterans.
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Debt Management Credit Counseling Corp. (DMCC)
- Fees: Varies by state; $5,000 debt minimum.
- Pros: Payday loan assistance, certified counselors.
- Cons: Limited availability; undisclosed fees.
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Best For: Extra services like payday loan help.
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Consumer Education Services, Inc. (CESI)
- Fees: $37 enrollment; $25/month average.
- Pros: Low fees, broad debt eligibility, nationwide.
- Cons: $1,500 debt minimum; weekday-only customer service.
- Best For: Managing a variety of unsecured debts.
How to Choose a Debt Management Plan
- Check Accreditation: Look for NFCC, HUD, or NACCC certifications.
- Compare Fees: Enrollment fees range $0 - $75; monthly fees are similar.
- Verify Legitimacy: Read reviews and check for any legal actions.
- Customer Service: Ensure availability and quality of support.
- Debt Requirements: Choose a provider that accommodates your debt amount.
FAQ
- Will a DMP hurt my credit score?
- Initial impact may be negative due to account closures, but long-term benefits outweigh this if payments are timely.
- How long does it take?
- Most DMPs last 3 - 5 years, depending on debt amount and payment consistency.
- Is a DMP expensive?
- Fees are regulated by state law; many agencies waive fees for financial hardships.
Pro Tip: Choose a nonprofit credit counseling agency for transparent fees and robust support.
