Debt management plan
A repayment plan set up by a credit counseling agency, where you make one monthly deposit and the agency pays your unsecured debts, often at lower rates.
The counselor works out a payment schedule with you and your creditors. Creditors may agree to lower your interest rates or waive fees. You pay the agency each month, and it pays your credit cards and other unsecured bills.
Plans can take 48 months or more, and you may have to agree not to open or use new credit until you finish. A plan pays your debts in full, which makes it different from debt settlement.
Example
Instead of paying three card companies at 25%, you pay the agency once a month and your creditors agree to lower rates.