Debt Management Program Guide

Consolidate debt, regardless of low credit or limited income.

What is a debt management program?

A debt management program (DMP) is a type of assisted debt consolidation. You enroll in the program through a credit counseling agency. It establishes a repayment plan to cover all of your credit cards and other unsecured debts with a single monthly payment. The agency negotiates with your creditors to reduce or eliminate interest rates and future penalties applied to your debts. As a result, you can get out of debt faster even though you may pay less each month.

Learn more about what a debt management program is »

How does a debt management program work?

  1. First, you work with a credit counselor to evaluate your debts, budget and credit.
    Learn more about a debt management program
  2. The credit counselor evaluates your situation to see if you’re eligible to enroll; they also review other options for debt relief that may work in your situation.
  3. If a debt management program turns out to be your best option, the credit counselor helps you enroll:
    1. The monthly payment is set based on what you can afford in your budget
    2. Setup fees are based on state regulations and rolled into your payment plan
  4. Once you find a monthly payment plan that works, the credit counseling agency contacts your creditors to get their signoff:
    1. The creditor agrees to the adjusted payment schedule.
    2. They negotiate to reduce or eliminate the interest rates applied to your debts.
    3. They also stop future penalties and fees.
  5. You make one monthly payment to the credit counseling agency and they distribute it amongst your creditors on your behalf.
  6. During and after enrollment, you have access to free resources to teach you better financial habits that don’t rely on credit cards.
  7. Once you graduate, your credit card accounts are rehabilitated and, in many cases, your credit score may be improved as well.

Find more specifics on how a debt management program works »

Get relief and results with a debt management program

Featured DMP Success Story: Kelly

See how we helped Kelly's special needs family

Kelly came to Consolidated Credit after the birth of her third child left her household burdened with medical bills and credit card debt. As a special needs child, Nate needed full-time care and Kelly was forced to quit her job. Less income and more expenses led to credit card debt. But with the help of Consolidated Credit, Kelly was able to develop a budget that worked for their household so her family could take control and regain stability…

When my son Nate was born with special needs, at first we weren’t even sure he’d live. Thankfully we were able to bring him home, but he needed hospice and in-home nursing. Machines were always running, the lights were always on. Our bills went through the roof.

My son didn’t qualify for Social Security. If there was something he needed, we had to put that on credit, too.

I had things I had to do at work, but I couldn’t keep up with them and give Nate the care he needed. I had to quit my job, so we lost my $40,000 annual salary. In just 3 years, we’d accumulated $66,000 in credit card debt.

Read Kelly’s full story to see how a DMP helped Kelly and her family »

Can YOU benefit from a debt management program?

A debt management program has a distinct advantage over other options for debt consolidation. With a DMP, you can consolidate debt regardless of your credit score. Even if you have bad credit you can still be eligible to enroll. This is different from other DIY debt consolidation solutions which require a high credit score in order to qualify for the low interest rates you need.

Benefits of a debt management program

There’s a wide range of reasons why a debt management program could be in your best interest. Here are the main reasons why people enroll:

  1. It can reduce your total monthly debt payments by 30 to 50%.
  2. You can get out of debt in 60 payments or less, on average.
  3. Your interest rates are typically reduced to between 0 and 11%.

Recommended reading: 6 Key Benefits of a Debt Management Program

A DMP and your credit score

Most peoples’ main concern with debt management programs are how enrollment will affect their credit scores. In most cases, as long as the program is completed successfully the effect is positive or neutral. In other words, if your credit score changes at all, it tends to go up.

Learn how DMP enrollment helps boost your credit »

Comparing the pros and cons

It’s important to note that a debt management program is not without its downsides. For example, you will have to adjust to having your credit card accounts frozen while you’re enrolled. However, the negatives are usually outweighed by the positives.

Explore debt management program pros and cons »

Debt management program FAQ

We’ve gathered up the most frequently asked questions about debt management programs and brought them together to answer everything you need to know!

Find the answers you need in our FAQ! »

Finding the right debt management company

Credit counseling agencies largely provide the same services, but the quality of that service can be very different. We help you choose the right provider for your needs.

Get 3 tips to help you choose the right debt management company »

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

All Consolidated Credit counselors are certified personal financial counselors (CFC) We've helped 5 million people get out of debt! Call us today and see what we can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

The National Industry Standards for Homeownership Education and Counseling are a set of guidelines for quality homeownership and counseling services. Industry professionals who adopt these standards can be trusted to provide consistent, high quality advice.
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Consolidated Credit Consulting Services, Inc. has been verified as the owner or operator of the Web site located at www.consolidatedcredit.org. Official records confirm Consolidated Credit Consulting Services, Inc. as a valid business. Call us today and see what we can do for you.

Consolidated Credit is a Certified ISO 9001 company, as verified through Bureau Veritas Certification.

Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

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Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

View the Consolidatedcredit.org review status

Consolidated Credit is proud to be an ANAB accredited member. Accreditation by a recognized and respected body such as ANAB ensures the impartiality and competence of our company. To see what we can do for you, give us a call.

U.S. Department of Housing and Urban Development - HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. Consolidated Credit is proud to be a member of HUD and also part of the Hope Now Alliance.

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With this amount of debt, you'd pay around $xx.xx on a DMP.

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