Debt management involves strategies and services designed to help individuals manage and reduce their debt. This can include creating a budget, negotiating with creditors for lower interest rates, consolidating debts into a single payment, and seeking professional assistance through credit counseling or debt management plans (DMPs). A DMP is typically administered by a credit counseling agency and involves negotiating with creditors to reduce interest rates and fees while creating a structured repayment plan. The goal of debt management is to help individuals regain control of their finances, reduce overall debt, improve credit scores, and prevent future financial difficulties. Effective debt management requires commitment and disciplined financial practices to achieve long-term financial stability.
