If you have out-of-control debt, you probably have made an attempt or two to pay it down. But a debt management plan (or DMP) is a much more organized plan of attack.
You usually enroll in a DMP through a credit counseling agency, where a credit counselor works with your creditors to come up with a schedule of monthly payments that gets you out of the red without defaulting on your credit cards or loans.
CNBC Select explains how debt management plans work, how they can affect your credit and what alternatives you should consider.
Guide to debt management plans
How a debt management plan works
To get into a debt management plan, you need to start working with a credit counseling agency. These non-profit organizations offer services,…
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