A debt management plan (DMP) is a structured repayment program designed to help individuals manage and pay off their unsecured debts, such as credit card balances. Typically set up by a credit counseling agency, a DMP consolidates multiple debts into a single monthly payment, which is then distributed to creditors. This can simplify the repayment process and often results in lower interest rates or waived fees. Participants in a DMP usually commit to making regular payments over a period of three to five years. While enrolled, individuals may be required to avoid taking on new debt and may receive financial education to help improve their budgeting skills. A DMP can provide a clear path to becoming debt-free.