A debt management plan (DMP) consolidates unsecured debts into one monthly payment at reduced interest rates arranged with each creditor. The reduced rates are set by each creditor and can be withdrawn, and the monthly payment cannot be adjusted after signing. A missed payment or a change in income can undo the plan’s core benefit.
A 2026 survey found that 77% of current and former DMP enrollees experienced at least one listed financial setback during or after their plan (Debt Disclosure Project/Harris Poll, 2026).
What Enrollees Experienced
| Setback | Share of current and former DMP enrollees |
|---|---|
| Collections, a lawsuit, or wage garnishment or bank levy | 41% |
| Took on new debt or fell behind on other bills to keep up with the payment | 36% |
| Creditor revoked the reduced rate or removed them from the plan | 25% |
| Late fees or penalty interest | 23% |
| Accounts sent to collections | 23% |
| Paid fees but saw little or no reduction in what they owed | 21% |
| Reduced interest rate revoked | 17% |
| Sued by a creditor or debt collector | 15% |
| Filed for bankruptcy | 8% |
Source: Debt Disclosure Project/Harris Poll survey, conducted online August 28 to 31, 2026, among 1,504 U.S. adults. Base: current and former DMP enrollees. Accurate to within ±3.4 percentage points.
The strain grows with the balance. 42% of enrollees with $25,000 or more in unsecured debt took on new debt or fell behind on other bills to keep up, compared with 29% of those who owed under $10,000 (Debt Disclosure Project/Harris Poll, 2026). More than 1 in 3 (35%) are dissatisfied or neutral about their plan, and 23% do not feel it accomplished what they had hoped.
“I got hurt and wasn’t working so ultimately it cost too much and they didn’t adjust the payment so I opted out.” (Woman, 43, New Jersey, former DMP enrollee) (Debt Disclosure Project/Harris Poll, 2026).
Enrollees Often Start in Financial Distress
Credit bureau data on DMP enrollees helps explain why setbacks are common. Many enter the plan already behind.
| Measure (before counseling) | Pre-COVID enrollees | Post-COVID enrollees |
|---|---|---|
| Average VantageScore | 596 | 607 |
| Share with trades 60+ days delinquent | 35.9% | 34.5% |
| Share with collections balances | 32.3% | 33.9% |
| Share with a charge-off in the past 12 months | 10.5% | 11.5% |
| Average unsecured debt | $22,312 | $21,344 |
Source: FinRegLab, Debt Management Insights for Distressed Borrowers: Credit Counseling and Lender Forbearances Post-COVID (2023). Data from NFCC-recruited agencies and Experian, counseling from Q3 2017 to Q3 2021.
About a third of enrollees already had collections balances or seriously delinquent accounts before counseling (FinRegLab, 2023). A fixed monthly payment set at enrollment leaves little margin if income drops.
What a Revoked Rate Means
When a creditor withdraws the reduced rate, the account returns to its standard terms. In the second quarter of 2026, the average interest rate on credit card accounts assessed interest was 22.15% (Federal Reserve, G.19). In the survey, 1 in 4 enrollees saw a creditor revoke the reduced rate or remove them from the plan (Debt Disclosure Project/Harris Poll, 2026).
How Setbacks Relate to Completion
The industry’s own figures put DMP completion at just 21% and 26%, from a 1999 internal memo and a 2001 report, and no comprehensive industry-wide completion rate has been published since. Because the payment is fixed for 48 to 60 months, a single setback can end the plan entirely.
After leaving a plan or deciding against one, 20% of consumers stopped paying some or all of their debts and 21% borrowed from family or friends. 25% turned to another formal option: a consolidation loan or balance transfer (12%), debt settlement (11%), or bankruptcy (6%) (Debt Disclosure Project/Harris Poll, 2026). Consumers who leave a DMP generally lose the reduced rates, and their accounts revert to the original terms.
Frequently Asked Questions
How common are setbacks in a debt management plan?
In a 2026 survey, 77% of current and former DMP enrollees experienced at least one listed financial setback. The most common were collections, lawsuits, or garnishment (41%) and taking on new debt or falling behind on other bills (36%).
Can a creditor take away the reduced interest rate on a DMP?
Yes. Reduced rates are set by each creditor and can be withdrawn. In the 2026 survey, 1 in 4 enrollees saw a creditor revoke the reduced rate or remove them from the plan.
Can I lower my DMP payment if my income drops?
The monthly payment cannot be adjusted after signing. If you leave the plan, creditors generally withdraw the reduced rates, and accounts revert to their original terms.
Sources
- Debt Disclosure Project. (2026). 9 in 10 consumers who met with a credit counselor wish they had received better information, new data shows. https://www.einpresswire.com/article/952363425/9-in-10-consumers-who-met-with-a-credit-counselor-wish-they-had-received-better-information-new-data-shows
- FinRegLab, Courchane, M., Gailey, A., Moulton, S., Tragesser, C., & Xie, R. (2023). Debt management insights for distressed borrowers: Credit counseling and lender forbearances post-COVID. https://finreglab.org/wp-content/uploads/2023/08/FRL_DB-CC_AugUpdate_FINAL-1.pdf
- Board of Governors of the Federal Reserve System. (2026, October 7). Consumer credit – G.19. https://www.federalreserve.gov/releases/g19/current/
- ShopNaclo. (2026). Why most people don’t complete their debt management plans. https://shopnaclo.com/latest-trends/why-most-people-dont-complete-their-debt-management-plans/