What is the primary purpose of debt management plans?

The primary purpose of debt management plans is to help consumers repay their debts in a structured and manageable way. These plans are designed to provide a clear pathway for individuals struggling with debt by organizing their payments and often negotiating lower interest rates or waiving fees with creditors. By creating a structured payment schedule, consumers can prioritize their debts and work towards becoming debt-free over time.

This approach focuses on improving financial stability and reducing stress associated with managing multiple debts, rather than simply facilitating new credit or consolidating accounts. While consolidating debts can be a part of the process, it is ultimately the structured repayment aspect that is most central to the purpose of these plans.