A **Debt Management Plan (DMP)** is a structured repayment program administered by a certified, non-profit credit counseling agency (such as members of the **NFCC** or **FCAA**). Unlike debt settlement, a DMP pays 100% of your principal balance while negotiating dramatically lower interest rates directly with creditors.
1. Average DMP Concessions from Major Issuers
| Creditor Class | Standard Interest Rate | Negotiated DMP Concession Rate | Monthly Savings |
|---|---|---|---|
| Tier-1 Bank Credit Cards | 24.99% – 29.99% APR | 6.00% – 9.99% APR | $150 – $300 / mo per $10k |
| Store / Retail Credit Cards | 29.99% – 34.99% APR | 0.00% – 8.00% APR | $200 – $350 / mo per $10k |
| Unsecured Personal Loans | 18.99% – 26.99% APR | 8.00% – 12.00% APR | $100 – $200 / mo per $10k |