Debt Management Services (DMS) are services provided by some agencies and companies to protect the financial interests of taxpayers. Those agencies attain this goal by a Debt Management Plan.

They offer solutions depending upon the kind and amount of your debt. Most of these credit counseling agencies are reputable non-profit companies known as Consumer Credit Counseling Services (CCCS), affiliated with the National Foundation for Credit Counseling (NFCC). They provide services for unsecured debt such as credit cards. These services may not be free of cost. The agencies charge a reasonable amount for counseling, as well as a one-time set-up fee. Some even charge a membership fee, an application fee and/or a per-creditor fee in addition to the monthly maintenance.

Debt management services offer several options. One option is that a single monthly payment to the agency will be redirected automatically to your creditors, thereby eliminating the need to make individual payments to each creditor. Another option is an automatic deposit service. With this program, the agency that deals with the debt plan will be able to deduct your monthly deposit from your savings account. This ensures that payments are disbursed on time.

These agencies also offer counseling programs in order to make sure that the debtors clearly understand the plan and its details. In most of the companies, the counselors are available 24 hours a day, seven days a week, to answer your questions. There are customer service centers monitoring clients and providing detailed information about their individual programs. Nowadays, online counseling is also available. These companies guarantee that your identity and information are held strictly confidential.