A debt management plan (DMP) is a structured program designed to help individuals regain control of their finances and pay off their debts in a manageable and structured way. The process begins with a thorough assessment of your financial situation. A certified credit counsellor will review your income, expenses, debts, and assets to gain a clear understanding of your financial picture. Based on the assessment, the credit counsellor will work with you to create a realistic budget. This budget will outline your monthly income, expenses, and debt obligations, helping you identify areas where you can reduce spending and increase savings. With your debt management plan in place, you'll make a single monthly payment to the credit counselling agency, who will then distribute the funds to your creditors according to the terms negotiated in your plan.

Once you've successfully completed your debt management plan, you'll be on the path to financial freedom. You'll have paid off your debts in a structured and manageable way, and you'll be equipped with the knowledge and skills to maintain your financial health in the future.

It's important to note that a debt management plan is not suitable for everyone, and it's essential to carefully consider your options and consult with a qualified credit counselor before enrolling in a DMP.