The burden of debt. So many of us live with it.
It can be an emotionally draining companion. In the back of your mind, you think about how much you owe. The feelings that accompany it can range from feeling trapped, ashamed, and confused.
The stress of debt can be simply overwhelming.
But there’s hope. Your debt is manageable with a plan and support, especially with a debt management program (DMP) through a trustworthy nonprofit organization whose goal is to serve you.
Here we will explore what a DMP is, as well as present other possibilities you can consider. Let’s start with some helpful data and definitions.
First, it’s important to acknowledge that you’re not alone.
Nearly half of Americans in a study reported living paycheck to paycheck in late 2024, while the average credit card debt per American is around $6,434 as of May 2025. Add to that a recent report that led the Consumer Financial Protection Bureau to say that “credit cards have never been this expensive.”
Also, 27% of Americans had trouble paying for medical care for themselves or their family, according to a 2025 study by the Pew Research Center. It’s not surprising that the headline of the study says, “the growing share of U.S. adults say their personal finances will be worse a year from now.”
Meanwhile, life is happening.
Honest people are trying to make ends meet while enduring job loss, divorce, an expensive medical procedure, and more. These are stressful enough without the added burden of debt.
So if you’re one of the many feeling overwhelmed by debt, it’s completely understandable.
Now that we’ve addressed this widespread problem, let’s understand the two kinds of debt you could be facing.
It’s essential to understand the difference between:
At GreenPath we specialize in assisting you with your non-priority debt but can also help with your entire budget.
We want to reassure you that there’s nothing wrong with needing help in knowing where your money needs to go. We know how daunting it can be, and we’re here to assist you every step of the way—whether it’s debt counseling or your overall financial picture.
Let’s now explore your options for getting out of debt, beginning with one of the most effective: the DMP.
Simply put, a debt management program (DMP) is a structured plan to repay unsecured debts (non-priority debts), usually through a nonprofit credit counseling agency like GreenPath.
When someone enrolls in a DMP, they receive a personalized monthly payment plan—a roadmap for paying off debts in full. After enrollment, GreenPath works with creditors to request concessions like lower interest rates and waived fees.
After a supportive counseling session, your plan is customized to you. Once enrolled, your client success team guides you as you work through your plan (and not as a debt collector).
It’s important to note that a DMP is not a debt consolidation or loan.
Rather, it’s a repayment program with some concessions that the DMP provider arranges with creditors on your behalf (such as lower interest and waived fees).
We’ll be the first to tell you that a DMP is not a “quick fix.” It’s a long-term path toward becoming debt-free.
And it works.
Great question! DMP candidates include people who are:
If you think a DMP may be right for you, consider these questions. Are you:
If you answered “yes” to any of these, enrolling in a DMP may be for you. But let’s take a closer look at the benefits first.
Having worked with many people just like you, we understand how stressful and debilitating debt can be. But with a little structure and support, peace of mind can be yours.
Here are the benefits many have experienced with the help of a DMP:
As great as DMPs are, we want you to know what your other options are. So, let’s cover those next.
While we’re confident that they’re the safest and most supportive choice, we’re first and foremost committed to serving your unique needs. That’s why we want to give you a clear overview of your other choices so that you can make the best decision for yourself.
A popular do-it-yourself approach to debt relief is the “avalanche” or “snowball” method.
Snowball Method: You pay off debts from smallest to largest balance, regardless of interest rate.
Avalanche Method: You pay off debts from highest to lowest interest rate, regardless of balance.
Neither method involves creditor arrangements, so you may still face collection calls or fees while working your plan.
It’s all in the name. This is about combining all of your debts into a single loan payment and rate.
A credit card to which other credit card debt can be transferred.
An agreement between you and creditors to settle your debt for a lower amount—usually a single lump sum payment.
This process entails working with a lawyer to seek legal relief from debt. Bankruptcy typically includes a court-supervised plan that results in making payments or liquidating assets. However, bankruptcy should always be a last resort.
We hope that gives you a clear sense of your debt relief options.
Since we believe DMPs are the best way to go for most, we’re going to pivot back to them. You’d be right to be wondering at this point, “how does a debt management program work?”
First, you’ll need to choose a reputable DMP provider (such as GreenPath—we’ll get more into that in a moment). Once that’s done, here’s what to expect:
You’re in good hands. You’ll speak with a certified financial counselor to review your income, debts, and financial situation.
You’ll be guided. Based on your financial picture, your counselor will determine if a DMP is a good fit. If not, you’ll still receive guidance and tools to help you move forward with confidence.
You’re ready to get started! You’ll make one monthly payment to your DMP provider, which they distribute to your creditors.
You can relax. Your DMP provider will reach out to your creditors to request reduced interest rates, waived fees, and more manageable terms.
You have the support you need and deserve. Need to adjust your plan? You’ll have continuous access to client success specialists, educational resources, worksheets, and other tools designed to help you stay on track.
You did it! Most people complete their program in 3 to 5 years. With your debts paid in full, your credit is on a more stable footing. Congratulations!
See? It’s a straightforward process once you start. But first…
When choosing a DMP, you deserve a partner that works in your best interest.
Here’s a valuable checklist to help you find one. This separates legitimate nonprofits who care from high-fee alternatives—and even scams:
Look for organizations accredited by the NFCC (National Foundation for Credit Counseling) or COA (Council on Accreditation), which ensure ethical practices and transparency. Additionally, ISO certification reflects high standards for quality, service, and continuous improvement.
Nonprofits like GreenPath are mission-driven, not profit-driven. Their goal should be to help you, not make money off your hardship.
Testimonials and success stories can help you feel confident. Look for feedback from people who have had similar debt situations. Be on the lookout for fake reviews (indicators include “too generic” and/or were posted in clusters at the same time).
Choose a partner with a proven record of accomplishment. Look for decades of experience and a history of helping people reduce and eliminate debt—not a company that just popped up last year.
A good partner will offer counseling up front and support throughout your debt management program. They should be positive, hold you gently accountable, and help you address any doubts.
Look for organizations that are up front about their fees (which should be affordable) and offer ongoing education and support. They should not pressure or shame you in any way.
We do all of the above and more!
Since 1961, we’ve been a trusted, national nonprofit helping people like you take control of their debt. We’re accredited, transparent, and known for compassionate support. Just look at our reviews or talk to one of our counselors—you’ll feel the difference from the first call.
We’re proud to have been named a “Best of 2024” by Forbes Advisor. We’ve also been featured by the likes of NerdWallet, Time, and other respected media outlets. But what really lights us up is what our clients say about us:
“The overall process was painless. They did a lot to reduce interest rates, and it made it manageable to pay off a great deal of debt.” (Vincent, Valley Stream New York)
“A memorable aspect of my experience was the transparency and willingness of the team to customize plans to fit individual needs. Over the duration of my plan, I managed to pay off a significant amount of credit card debt with their guidance and support.” (Chelsea, Chaska, MN)
“GreenPath made me hopeful that there are still places that are honest and helpful. Thank you so much for being there with me to ensure I accomplish my debt-free journey.” (Emily, Ontario, CA)
“The communication with GreenPath was exceptional. They clearly laid out each step and were understanding of my needs, especially when unexpected challenges arose. They were willing to adjust payments based on my financial situation, assisting me steadily with understanding and flexibility.” (Evol, Wilmington, DE)
(All reviews via ConsumerAffairs.com)
We believe in our clients 100% and love nothing more than seeing you succeed.
Your journey toward freedom from debt starts with a simple conversation. Contact us now to get started.
Or explore our Debt Management Program online.
How does a DMP affect your credit score, if at all?
Allow us to address this elephant in the room: a DMP may initially affect your credit if accounts are closed, but over time it can help by reducing balances and ensuring on-time payments.
A DMP does not damage your credit the way a debt settlement or bankruptcy might.
Credit improvement is a long game where a DMP may be a part of the process. For many, it’s a necessary first step to rebuilding a good credit history.
Do-it-yourself debt payoff is possible but can be very challenging. It takes discipline, organization, and often the ability to negotiate with creditors. It can even be a lonely journey if you don’t have accountability and support around you.
But you don’t have to go alone.
With a nonprofit like GreenPath, you have the structure, support, and creditor concessions many people need. We’ll work with you as a team to manage your debt repayment and help you achieve your financial goals. In addition to the checklist above, you’ll also get:
And remember that, as a nonprofit, we exist to serve you—not make money on your hardship.
Debt is personal, but the negative feelings it creates are shared by many.
The good news is that there are ways to get rid of those feelings, by making debt manageable. While there are a few ways that can help you work through your debt, a debt management program is one of the best tools at your disposal.
At GreenPath, we’re committed to helping people live a stress-free financial life. That’s why we offer DMPs—and so much more.
Get in touch with us and learn more about how we can help you.
Explore Our Debt Management Program
This article is shared by our partners at GreenPath Financial Wellness, a trusted national non-profit.