Best DMPs: Important Considerations
Jackie hit a financial wall after facing hardships, and she’s not alone. Learn how she explored the best debt management programs as part of her debt relief journey and found a way forward.
- Debt management programs (DMPs) offer structured repayment plans, usually with reduced interest rates.
- Companies like GreenPath, InCharge, and Cambridge Credit Counseling are BBB-accredited and highly rated by real users.
- If you still have decent credit, debt consolidation loans may be a better alternative to explore.
- Unlike typical debt relief companies, DMPs do not require you to default on your debt.
Jackie’s Story: From Stress to Strategy with a Debt Management Plan
Jackie, a single mom from the Midwest, found herself more than $20,000 in debt after a mix of medical bills, a sudden job loss, and using credit cards to float essentials. She’s not alone, either. Scores of Reddit users share similar stories about juggling multiple financial responsibilities after a layoff, unexpected housing expenses, or simply struggling with inflation. Jackie’s breaking point came when a third card hit its credit limit. Desperate for a plan, she started researching debt management programs (DMPs)—and slowly, things began to change.
What Is a Debt Management Program?
A Debt Management Program (DMP) is a structured repayment plan set up through a nonprofit credit counseling agency. The agency will work with you and your creditors in order to negotiate lower interest rates and potentially consolidate your payments into a single monthly amount. You still repay the full balance, but often at better terms and without the burden of juggling multiple due dates. Unlike debt settlement, DMPs don’t involve defaulting or negotiating down the amount owed, making them a less damaging option for your credit.
Best Debt Management Plans
GreenPath Financial Wellness: Best for Comprehensive Counseling
GreenPath is a nonprofit organization with an A+ rating from the Better Business Bureau. They offer full-service financial counseling, including DMPs, and provide a holistic approach to budgeting and long-term debt resolution.
Jackie was drawn to GreenPath after reading feedback that praised the agency’s transparency and ability to bring interest rates down to as low as 6% on major credit cards.
InCharge Debt Solutions: Best for Simplicity and Speed
InCharge Debt Solutions is another nonprofit agency with an A+ BBB rating. They specialize in quickly setting up debt management plans, often enrolling clients within days of their first call.
Jackie liked that she could enroll quickly without a lot of red tape, and there were reports of interest rates being negotiated down from 22% to 8%. Interest rate changes can help open up space in your budget or allow you to pay down existing debts faster if you maintain a similar payment.
Cambridge Credit Counseling: Best for Educational Support
Cambridge Credit Counseling also carries a BBB rating and is recognized for its educational resources and effective client communication. Their DMP includes free financial literacy tools, which Jackie found incredibly helpful.
Users report an approach that is easy to understand, with explanations provided at every step of the process. For Jackie, it wasn’t just about getting out of debt—it was about staying out. Cambridge even offers tools to avoid the same debt pile-up from happening in the future.
Compare Debt Relief Solutions
Considering Debt Consolidation Instead?
Debt consolidation loans are another option worth exploring, especially if you have a credit score above 650. These personal loans combine your high-interest unsecured loans and credit card debt into a single lower-interest loan, making it easier to manage. Jackie briefly considered this route, but her score had already taken a hit.
Frequently Asked Questions
Find answers to common questions about debt management companies.
A DMP is a repayment plan arranged through a credit counseling agency that consolidates your debts into one monthly payment with reduced interest rates.
Unlike debt settlement, DMPs don’t damage your credit score. Paying on time can gradually improve it over time.
Most plans take 3–5 years to complete, depending on your total debt and the monthly contribution amount.
Most major credit card companies participate, but not all creditors are required to accept the plan.
Usually, credit accounts are closed when you enter a DMP, and using new credit is discouraged during the repayment period.
