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With millions of Americans struggling to repay their credit card debt, it may be a good time to consider a debt management plan (DMP) offered by many nonprofit credit counseling agencies. That’s because people with large balances and high interest rates who enroll in a DMP are receiving favorable repayment terms from a variety of creditors, according to Consumer Credit Counseling Service (CCCS) of Greater Atlanta.

Consumers who enroll in a Debt Management Plan (DMP) now typically will receive interest rates from many creditors ranging from 6% to 10%, compared to a range of 10% to 14% last year, the agency reports. Many people who opt for a DMP to repay their unsecured debt are prompted to seek help after late payments have caused their credit card interest rates to soar to 28% or more.

“These lower rates should help a larger group of people get on the path to repaying their debts,” said Rick Phillips, vice president, Debt Management Plan Services for CCCS of Greater Atlanta. “A DMP provides a long-term strategy to get debts under control with greatly reduced interest rates.”

The lowered rates are only available to clients beginning a new DMP.

A DMP is a repayment plan that provides a systematic method for paying down outstanding debt. Consumers make a single payment to a nonprofit credit counseling agency like CCCS, which acts as a trustee in distributing the funds to creditors. CCCS works with both clients and creditors to design a repayment program that minimizes monthly payments, interest and related fees, providing a manageable tailored plan for the client. This enables the client to repay their entire debt obligation at more favorable terms, and on a plan that is within their ability to pay.

The repayment period varies based on amount owed and the repayment terms. The average debt management plan is structured to repay debt in 36-60 months.

Source Debt Management Plan