Here’s how debt management plans work and how to decide if one is right for you. Debt management plans are structured repayment plans to help you repay outstanding debt. In most cases, credit counseling agencies negotiate payment plans on your behalf.
Can a debt management plan help you pay off debt faster?
A debt management plan from a nonprofit credit counseling company can help you pay off debt faster and for less. Learn about debt management plans and compare options.
How long does a debt management plan take to pay off?
A typical result might be reducing an interest rate from 20% or more to less than 10%. The debt management plan generally aims to pay off all the unsecured debts within three to five years. Four years is a typical time to complete payoff. Debt management plans are only for unsecured debts such as credit cards and personal loans.
