Credit Card Glossary: Terms and Definitions
Confused by credit card terms? CreditCards.com's glossary of credit card definitions will help. From account holder to Regulation Z, we have defined the most-common and most-confusing credit card terms.
- Debt management plan (DMP)
- In credit counseling, a debt management plan (DMP) is a formal agreement between a debtor, a credit counseling firm and creditors. The debtor agrees to make a single, regular payment to the counseling firm, which distributes it among creditors on an agreed-upon schedule. Credit card firms offer some concessions to debtors who enter debt management plans by, for example, trimming interest rates. Entering into a debt management plan does not directly impact a credit score, but may indirectly make future borrowing more difficult, since some lenders may shy away from people who have had serious debt problems.