A Debt Management Plan (DMP) is a financial arrangement designed to help individuals or households struggling with unmanageable debt. It is a form of debt consolidation that allows you to repay your debts in an organized manner through affordable monthly payments. This will not allow you to reduce the debt or stop the interest charges. Debt Management company will tell you to reduce the spending and pay off debts

Creditors' Agreement: If your creditors accept the proposal, they are legally bound by its terms, providing you with protection from further collection actions and interest accrual.

Less Severe Credit Impact: Although a consumer proposal affects your credit score, its impact is generally less severe and shorter-lived compared to bankruptcy.