What Is a Debt Management Plan From Cambridge Credit Counseling?

What a Debt Management Plan Is#

A debt management plan through Cambridge Credit Counseling consolidates your unsecured bill payments into one monthly payment. Cambridge works with each of your creditors to set up the plan, and it is one possible outcome after a credit counseling session, though it is not the same thing as counseling itself.

One Payment, Many Creditors#

If you enroll in a Cambridge Credit Counseling Debt Management Plan, you make one monthly payment to Cambridge. Cambridge then sends payments to each of the creditors listed on your plan on your behalf.

Creditor Concessions Are Not Guaranteed by Cambridge#

Concessions on a debt management plan, such as reduced interest rates, waived fees, or bringing past-due accounts current, are set by each creditor, not by Cambridge Credit Counseling. There are preset guidelines and concessions the credit card companies offer which we have programmed in our systems. There are no negotiations happening. We can present the benefits and concessions before you sign up for the DMP. In some cases concessions and benefits can vary based on the level of hardship in the budget. In some cases certain accounts may not be eligible for the concessions and benefits. One of the most common benefits creditors extend to clients of a credit counseling agency like Cambridge is a reduction in credit card interest rates.

A Debt Management Plan Is Not a Loan#

A DMP does not lend you money. Instead, Cambridge Credit Counseling collects your one monthly payment and distributes it to your creditors according to the plan each creditor has agreed to.

Who a Debt Management Plan May Suit#

People who are having trouble keeping up with credit card and other unsecured bills, and who want to consolidate several payments into one, may want to talk with Cambridge Credit Counseling about a debt management plan.

Who a Debt Management Plan May Not Suit#

Setting up a debt management plan may adversely affect your credit, though the effect may be temporary as you remain committed to making monthly payments through your Debt Management Plan. If you stop paying your debts, creditors may raise finance charges or other fees, or pursue collection activity, including litigation. Anyone weighing these risks against their own situation should discuss them directly with a Cambridge counselor.

Fees Exist and Are Disclosed#

Cambridge Credit Counseling is a nonprofit agency, and it is supported in part by the monthly fees clients pay, along with funding or grants from some creditors. Any fees connected with a debt management plan are disclosed to you before you decide whether to enroll.

How to Find Out If You Qualify#

To learn whether a debt management plan could work for you, Cambridge Credit Counseling asks you to complete a personalized, one-on-one debt analysis with one of its nationally certified credit counselors. That counselor reviews your financial situation and the debts you want to include, then gives you an estimated monthly payment and an estimated timeframe for becoming debt free.

What to Do Next#

Credit counseling from Cambridge Credit Counseling is a free service, and there is never any obligation to enroll in a debt management plan afterward. Ask about a free counseling session to review your situation with a nationally certified credit counselor before deciding what fits your needs.

What a debt management plan actually does

• Interest paidOur typical client would have paid $44,676 in interest on their own, against $4,936 in interest and our fees on the plan
• Interest ratesCreditors cut them from 28.99% to 7% on average
• Monthly payment35.7% lower on average, or 31.1% after our fees
• Time to pay off38 months on average, against a 52-month plan

Cambridge Credit Counseling client data: 6,809 enrollments in the year to 30 June 2026, and 1,434 plan completions in 2025. Prepared by Brian Vosburgh, Director of DMP Operations, September 2026.

Your own result depends on your debts, your budget and what your creditors agree to.