What is a debt management plan

This episode explains debt management plans (DMPs), which are programs helping individuals manage overwhelming debt. DMPs involve credit counselling agencies negotiating lower interest rates and simplified payments with creditors. The benefits include reduced interest, easier payment processes, faster debt repayment, and potential credit score improvement. However, potential drawbacks such as fees and initial negative credit score impact are also discussed. Ultimately, the article advocates for consulting a credit counsellor to determine DMP suitability.