A Debt Management Plan is a program where you make one monthly payment for all creditors through a licensed service agent that has lower, pre-negotiated, fixed rates with your creditors. Typically the rates are between 4% to 9%. In a Debt Management Plan, you will be paying back 100% of the debt that you owe but you will be paying back at a lower interest rate.
Once enrolled into a debt management program, your job doesn’t end just because a credit counseling agency has agreed to pay your bills on your behalf.
In any debt management program, it is important to: