A Debt Management Program (DMP) allows a credit counseling agency to negotiate with creditors to reduce interest rates, late fees, and make monthly payments more affordable for those with serious debt problems. When choosing a DMP, it is important to carefully select a reputable credit counseling agency and ensure any agreement is in writing specifying payment amounts and length of the program. Sticking to the payment schedule and verifying payments are received is also key to successfully completing a DMP. However, the debt management industry has many fraudulent actors, so consumers should remain cautious of unnecessary fees or deception when considering a DMP.

1. Debt Management Program
A Debt Management Program(DMP) is an arrangement in which a credit counseling or debt
management agency negotiates with your creditors to reduce or freeze your interest rates, redeem
late fees and make your monthly payments more manageable. Debt Management Programs are not
for everyone but if you are trapped into a serious debt trouble, you may get some benefits from
participating in one of these programs. Following are some of the strategies for getting the most out
of your Debt Management Program.
1. Choose a Debt Management Program carefully- Debt Management industry is infested with too
many fraud agencies and companies. Try to find out real credit counseling before enrolling in a
DMP.
2. Make sure that you can make the negotiated monthly payment- Seek other options if you are not
able to pay the negotiated monthly payments.
3. Get the DMP plan in writing- Never ever rely on verbal promises of the counseling agencies. Get
a contract signed from them specifying payment fees, length of time and other necessary details
until the debt are paid off.
4. Make your payments on time each month- For successful executions of your DMP make your
payments on time on a regular basis.
5. Verification of payments made- It’s important to check your creditors in making the thing sure
that they have received the agreed upon payments.
DMP’s and credit counseling agencies are notorious for fraudulent and deceptive practices. Always
keep your guard up and watch your finances carefully. Never pay unnecessary or unworthy fees.