What is a debt management plan?

A debt management plan (DMP) is a formal agreement between a borrower and a creditor that outlines a revised payment schedule and repayment plan for a borrower who is unable to make their monthly payments. The plan may include lower monthly payments, waived late fees, or other terms that make repayment easier. The goal of a DMP is to help a borrower become debt-free in a reasonable amount of time.