How Much Can You Save with a Debt Management Plan?

On average, MMI debt management plan (DMP) clients save $48,850 and pay off their debt roughly 26 years sooner than they would by making minimum payments alone. Here’s how those savings break down.

Debt Management Plan: Average Savings

Every debt management plan is unique, with different creditors and different account balances. If you're interested in discovering what a DMP might look like for you, begin with our free online financial counseling to receive a personalized estimate based on your actual debts and current budget.

To give you a sense of what most consumers can expect to save with a debt management plan, however, here's what the average client saved in 2025, based on the aggregated data of MMI's real client base compared against the projected cost of making minimum payments (defined as 1% of the principal, plus interest charges, with a monthly minimum of $35) without the DMP's reduced interest rates.

This projection is a broad estimate. Your results will vary.

Debt Management Plan vs. DIY Debt Payment

*MMI DMP fee projection based on the 2025 average for monthly fee ($26) and one-time set-up fee ($37).

Total savings on a debt management plan: $48,850 and 26 years

All told, a debt management plan lowers the average interest rate from 27.91% to 7.66%, reduces the total cost of the debt from $78,374 to $29,524, and shortens the payoff from 362 months to 50 months.

The numbers paint a clear picture: MMI clients save a lot of time and money through the debt management plan. If you're dealing with overwhelming credit card debt, you owe it to yourself to see how much you can save with a DMP.

How Does a Debt Management Plan Save You Money?

A debt management plan can clearly save you a lot of money. But how does it work? Here are the basics of how a DMP saves money:

Reduced interest rates

The main reason why you can save so much on a debt management plan is that most credit card companies offer reduced interest rates for participating on a plan.

For creditors, these reduced interest rates are a way to help ensure that you're able to repay your debt in full. For consumers, however, these lower interest rates can equal big savings, especially if your current interest rates are on the high side.

Every participating creditor offers their own rates, but in aggregate, the average interest rate for accounts included on a debt management plan with MMI is below 8%.

Faster debt payoff times

Debt management plans are typically designed to be completed in less than five years. Part of the tradeoff for creditors reducing your interest rates is that you pay off the debt in a reasonable amount of time.

A DMP works as a debt snowball tool: as smaller debts are paid off, the money going to those accounts is redirected to your remaining accounts, increasing those payments and accelerating your debt payoff.

The average debt management plan with MMI is successfully completed in about four years and some are completed in as little as 24 months. Paying off your debts quickly means fewer monthly interest charges. And when you combine that with the reduced interest rates you get for using a DMP, you can see how quickly those savings can add up.

And as an added perk, paying through a DMP means that you consolidate all of your debts into a single payment, simplifying your finances and making your monthly budget that much easier to manage.

Improved credit score

One more benefit of the DMP: MMI clients who have successfully completed their DMP have seen an average credit score increase of 82 points. A better credit score gets you access to better terms on credit and loan products, saving you money even after you're off the DMP and out of debt!

Debt Management Plan Savings: Frequently Asked Questions

How much does a debt management plan cost?

Your total cost depends on your balances and interest rates. In the comparison above, the average client's total cost was $29,524, compared with $78,374 making minimum payments. That total includes plan fees, which vary by state and by your situation; see our debt management plan FAQs for current fee details.

How much can a debt management plan lower my interest rate?

Across accounts enrolled on a debt management plan with MMI, the average interest rate is below 8%. For creditor accounts included on a DMP with MMI in 2025, the average rate fell from 27.91% to 7.66%.

How long does a debt management plan take?

Debt management plans are typically designed to be completed in less than five years. The average debt management plan with MMI is successfully completed in about four years.

Is credit counseling free?

Yes. MMI credit counseling is free and includes a personalized review of your debts and budget. If a debt management plan turns out to be the right fit, the plan itself typically comes with a one-time setup fee and a monthly fee.

Does a debt management plan affect your credit?

Enrolling in a debt management plan does not lower your credit score on its own. Accounts enrolled on the plan are typically closed, which can affect your credit utilization ratio and the average age of your accounts. Making on-time payments and reducing your balance improves your credit score, however, which is why MMI clients who have successfully completed their plan have seen an average credit score increase of 82 points.

Is Money Management International a nonprofit?

Yes. Money Management International is a 501(c)(3) nonprofit organization. MMI is a longstanding member of the National Foundation for Credit Counseling, is accredited by the Council on Accreditation, is a member of the Financial Counseling Association of America, and is certified by the U.S. Department of Housing and Urban Development to provide consumer housing counseling.