Debt can feel overwhelming, and it’s easy to believe you’re alone in facing it. The reality is that millions of Americans juggle multiple debts while trying to make ends meet, from credit cards to medical bills. Understanding your options is the first step toward regaining control and finding a path to financial peace.
Consumer Debt: What the Data Says
First, it’s important to acknowledge that you’re not alone.
Nearly half of Americans in a study reported living paycheck to paycheck in late 2024, while the average credit card debt per American is around $6,434 as of May 2025. Add to that a recent report that led the Consumer Financial Protection Bureau to say that “credit cards have never been this expensive.”
Also, 27% of Americans had trouble paying for medical care for themselves or their family, according to a 2025 study by the Pew Research Center. It’s not surprising that the headline of the study says, “the growing share of U.S. adults say their personal finances will be worse a year from now.”
Meanwhile, life is happening.
Honest people are trying to make ends meet while enduring job loss, divorce, an expensive medical procedure, and more. These are stressful enough without the added burden of debt.
So, if you’re one of the many feeling overwhelmed by debt, it’s completely understandable.
Now that we’ve addressed this widespread problem, let’s understand the two kinds of debt you could be facing.
Priority vs. Non-Priority Debts
It’s essential to understand the difference between:
- Priority debts can lead to immediate harm if left unpaid (such as eviction or repossession). They include your mortgage, rent, utilities, car payments, taxes, and child support.
- Non-priority debts include credit card bills, medical expenses, and loan payments. These debts are often included within the debt management program (like what is offered at GreenPath).
We specialize in assisting you with your non-priority debt but can also help with your entire budget.
We help reassure you that there’s nothing wrong with needing help in knowing where your money needs to go. We know how daunting it can be, and we’re here to assist you every step of the way, whether it’s debt counseling or your overall financial picture.
Let’s now explore your options for getting out of debt, beginning with one of the most effective: the DMP.
What Is a Debt Management Program?
Simply put, a debt management program (DMP) is a structured plan to repay unsecured debts (non-priority debts), usually through a nonprofit credit counseling agency like GreenPath.
When someone enrolls in a DMP, they receive a personalized monthly payment plan, a roadmap for paying off debts in full. After enrollment, GreenPath works with creditors to request concessions like lower interest rates and waived fees.
After a supportive counseling session, your plan is customized to you. Once enrolled, your client success team guides you as you work through your plan (and not as a debt collector).
It’s important to note that a DMP is not a debt consolidation or loan.
Rather, it’s a repayment program with some concessions that the DMP provider arranges with creditors on your behalf (such as lower interest and waived fees).
We’ll be the first to tell you that a DMP is not a “quick fix.” It’s a long-term path toward becoming debt-free.
And it works.
Who Is a Debt Management Program For?
Great question! DMP candidates include people who are:
- Making minimum payments but feeling stuck.
- Enduring high interest charges on credit cards or personal loans.
- Receiving collections notices for medical bills and other “non-priority debts”.
- Overwhelmed by multiple debt balances.
If you think a DMP may be right for you, consider these questions. Are you:
- Juggling multiple unsecured debts (such as credit cards, loans, and medical bills)?
- Struggling to keep up with minimum payments?
- Experiencing harassment from creditors?
- Being denied when applying for loans or credit cards?
- Trying to avoid bankruptcy (or are ineligible for it)?
- Burdened with debt from a divorce?
If you answered “yes” to any of these, enrolling in a DMP may be for you. But let’s take a closer look at the benefits first.
Benefits of a Debt Management Program
Having worked with many people just like you, we understand how stressful and debilitating debt can be. But with a little structure and support, peace of mind can be yours.
Here are the benefits many have experienced with the help of a DMP:
- Lower rates: Have a little more money at the end of the month with reduced interest rates (that GreenPath may be able to arrange with your creditors).
- Waived fees: Relieve the pressure of those fees that may be pressing down on you now. In some cases, creditors may waive late or over-limit fees.
- No collections: Lessen the stress of talking to collectors as we arrange repayment on your behalf.
- Credit impact over time: While credit scores may dip early in a debt management program, many clients see gradual improvement over time as consistent, on-time payments are made.
- Clear timeline: See the light at the end of the tunnel! Our clients with a DMP are usually debt-free within 3 to 5 years.
- Ongoing support: Never feel alone in your journey toward debt relief. You’ll have ongoing support and accountability from a client success specialist who cares.
If you’re feeling stuck or weighed down by debt, know that a structured plan and supportive guidance can make a real difference. Debt Management Programs (DMPs) offer a proven way to regain control, reduce stress, and work toward becoming debt-free. With the right support, a brighter financial future is within reach.
This article is shared by our partners at GreenPath Financial Wellness, a trusted national non-profit.
