Debt management is a service that is provided by credit counselling agencies. What the credit counselling agencies do on the debt management plan is to renegotiate with your creditors and set up a contract with the newly negotiated terms. The new negotiated terms usually involve a low rate of interest and a waiver of other charges such as late fees and financial charges.
One of the main reasons why creditors are willing to work with consumers through a debt management plan is that reputable credit counselling services only and roll those consumers in a debt management plan for genuinely facing a financial problem and are unable to repay the debt under the current terms of interest. What a credit counselling agency does first of all these carefully overview your financial situation along with the details of your debt and financial resources.
Only after it determines that you cannot pay off your debt by following simpler methods like budgeting and conserving your spending is does it recommend including you for a debt management plan. Because reputable and legitimate credit counselling services to not abuse the trust of the creditor by negotiating with them for a consumer who could have paid off the debt under the original terms of the contract just by saving on surplus expenditure the creditors are willing to renegotiate and lower the rate of interest when you are a part of a debt management plan through a good credit counselling agency.