Debt Management Plan Calculator
See How Much You Could Save with our Debt Management Plan Calculator
Use DebtWave's free Debt Management Plan Calculator to estimate what your monthly payment and interest rate could look like for one of your credit cards or eligible unsecured debts.
Select your creditor and enter your current balance, APR and minimum payment. The calculator will compare those numbers with estimated Debt Management Program terms.
Estimate Your DMP Payment
Compare Interest Rates
See Potential Payment Differences
Compare Your Current Debt
See How Lower Interest Could Affect Your Monthly Payment
High credit card interest rates can make it difficult to reduce a balance because a significant portion of each payment may go toward finance charges. A Debt Management Plan, often called a DMP, may provide participating accounts with reduced interest rates, modified payments or other creditor concessions. Instead of guessing what those changes could mean, use one of your actual accounts to create an estimate.Before You Begin
How to Use the Debt Management Plan Calculator
Start with the credit card or unsecured account carrying your largest balance. Your most recent statement should contain the information you need.Information You'll Need
- Creditor name
- Current account balance
- Current APR or interest rate
- Minimum monthly payment
What You'll See
- Estimated monthly DMP payment
- Estimated DMP interest rate
- Estimated monthly finance charges
- Estimated payment and interest difference
Calculate Your Estimated DMP Payment
Enter One of Your Credit Card Accounts
Enter the information from one of your accounts below to see estimated Debt Management Plan terms.Understanding Your Results
What Do the Debt Management Plan Calculator Results Mean?
1
Estimated DMP Payment
This is the estimated amount that could be allocated each month to the creditor you selected if the account qualified for a Debt Management Program.2
Estimated DMP APR
Participating creditors may offer reduced interest rates. The displayed rate is an estimate based on current creditor guidelines used by the calculator.3
Estimated Monthly Difference
This compares your current payment and finance charges with the estimated DMP payment and interest expense.Debt Management Explained
What Is a Debt Management Plan?
A Debt Management Plan is a structured repayment program commonly offered through nonprofit credit counseling organizations. A DMP is not a new loan. Instead, a credit counseling organization works with participating creditors to establish repayment terms that may include reduced interest rates, modified monthly payments or other creditor concessions. Consumers generally make one scheduled program payment to the credit counseling organization, which then distributes the appropriate payments to participating creditors. The Consumer Financial Protection Bureau also provides information about nonprofit credit counseling and Debt Management Plans. A DMP is different from debt settlement. The goal of a traditional Debt Management Program is generally to repay participating debts rather than negotiate principal balances for less than the amount owed.
Potential DMP Benefits
What Could a Debt Management Plan Change?
Benefits depend on each creditor, account and current creditor guidelines. When accounts qualify, potential benefits may include:- Reduced interest rates on participating accounts
- Lower required payments in some situations
- One scheduled Debt Management Program payment
- A structured repayment schedule
- No new consolidation loan
- No traditional loan approval requirement
- Support from a nonprofit credit counseling organization
Creditor participation and program terms vary, so every account will not receive identical concessions.
How the Process Works
How DebtWave's Debt Management Plan Works
Learning about a Debt Management Program does not require you to enroll. The process begins by reviewing your complete financial situation.1
Review Your Debt
A counselor reviews your credit card balances, interest rates, payments, income and household expenses.2
Identify Eligible Accounts
DebtWave reviews which creditors and accounts may qualify and explains the terms currently available.3
Compare Your Options
Compare your current payments and APRs with estimated DMP terms and other repayment approaches.4
Enroll if It Makes Sense
If you decide a DMP fits your situation, eligible accounts can be organized into a structured repayment program.5
Work Toward Payoff
DMPs are commonly designed to repay enrolled balances over several years, depending on balances, payments and creditor terms.
Is This Calculator for You?
Who Should Use the Debt Management Plan Calculator?
The calculator may be particularly useful when high-interest unsecured debt is becoming difficult to manage.- Interest charges are making balances difficult to reduce
- Minimum payments consume too much of your monthly budget
- You have several credit card payments to manage
- A large portion of each payment goes toward interest
- Your balances are close to their credit limits
- You are comparing a DMP with a consolidation loan
- Paying the debt in full remains your goal
- You want information before speaking with a counselor
You do not have to be behind on payments to explore credit counseling. Many consumers investigate their options while accounts are still current because high interest rates are making repayment increasingly difficult.
Compare Repayment Options
Debt Management Plan vs. Debt Consolidation Loan
A DMP can simplify several creditor payments into one scheduled program payment, but it is not a debt consolidation loan.| Debt Management Program | Debt Consolidation Loan |
|---|---|
| No new loan | Requires new financing |
| No traditional loan approval requirement | Approval depends on lender requirements |
| Existing debts are repaid | Existing debts are typically replaced by a new loan |
| Participating creditor APRs may be reduced | APR depends on the new loan offered |
| One scheduled DMP payment | One new loan payment |
| Administered through a credit counseling organization | Provided by a bank, credit union or lender |
A consolidation loan can work for some consumers who qualify for favorable terms. Others may prefer to evaluate a Debt Management Program because it does not require borrowing additional money.
Look Beyond One Account
Want an Estimate for All of Your Credit Cards?
The calculator provides a quick estimate for an individual account. A DebtWave credit counselor can review your debts together and estimate what a complete Debt Management Program payment could look like. Free nonprofit credit counseling. No new loan. No obligation to enroll. Get Started OnlineSee the Complete Picture
Find Out What Your Complete Debt Management Plan Payment Could Be
If you have several credit cards, evaluating one account only tells part of the story. A complete credit counseling review allows your balances and household finances to be considered together. During a free DebtWave credit counseling session, a counselor may review:- Credit card balances
- Current interest rates
- Required monthly payments
- Household income
- Living expenses
- Participating creditors
- Estimated DMP payments
- Other repayment alternatives
Frequently Asked Questions
Debt Management Plan Calculator FAQs
What is a Debt Management Plan Calculator?
A Debt Management Plan Calculator estimates how the monthly payment and interest rate on an eligible debt might change under a DMP. DebtWave's calculator uses information such as your creditor, balance, APR and current payment.How accurate is the DMP calculator?
The results are estimates rather than guaranteed creditor offers. Actual terms can vary according to the creditor, account type, account status, balance and creditor policies in effect when an account is enrolled.Does using the calculator affect my credit score?
No credit check is required simply to use this calculator. You enter the account information yourself to receive an estimate.Will a Debt Management Program lower my interest rate?
Participating creditors may provide reduced interest rates, although the rate available depends on the creditor's current guidelines and the individual account.Can I calculate more than one credit card?
Yes. You can evaluate accounts individually. If you want to see how several eligible accounts could work together in a DMP, a DebtWave counselor can review the complete debt picture.Is a DMP the same as debt settlement?
No. A traditional Debt Management Program is generally structured to repay enrolled balances. Debt settlement generally seeks to resolve debts for less than the full amount owed.Do I need a good credit score for a DMP?
A DMP is not a new loan, so traditional loan approval based on a credit score is not required. Eligibility instead depends on factors such as creditors, balances, budget and ability to make the proposed program payment.How long does a Debt Management Plan take?
Many programs are structured to repay eligible enrolled debts over approximately three to five years. The actual period depends on balances, payments and creditor terms.What happens to credit cards included in a DMP?
Credit card accounts enrolled in a Debt Management Program are generally closed or restricted from additional purchases. Specific treatment can depend on creditor requirements.Is DebtWave's initial credit counseling consultation free?
Yes. You can review your financial situation and potential repayment options with DebtWave without an obligation to enroll in a Debt Management Program.Take the Next Step