There are a few reasons why a debt management program (DMP) can lower monthly payments. The most common way a DMP lowers monthly payments is through negotiations and collaboration with the creditors. A credit counseling service strikes a deal with a client’s creditors to reduce payments and interest or even completely drop their interest rates. These concessions are available only to DMP clients of recognized counseling agencies. Creditors tend to respond well to credit counseling services, as they understand that the client is trying to fulfill their obligations, versus filing for bankruptcy or simply not paying their bills at all. Often creditors will offer to lower or eliminate late fees. Creditors are often more willing to extend beneficial terms to DMP clients so that they can avoid the expense of turning the account over to a collections firm or the even more costly route of trying to recover money through a bankruptcy. Usually, a DMP created by a certified credit counselor and sponsored by an accredited credit counseling agency results in a positive outcome for both the creditor and the customer who owes the money. Creditors realize that individuals who enter into a DMP are making an effort to repay their financial obligations.