A more thorough explanation:

A debt-management plan (DMP) is an agreement between a debtor, a credit counseling firm, and the debtor's creditors. The purpose of a DMP is to help debtors who are struggling to make payments on time to pay a smaller amount per month, in order to be able to pay their creditors.

Under a DMP, the debtor makes a payment to the counseling firm, which then oversees the distribution of the amount among creditors. Credit counseling agencies will negotiate with the creditors on behalf of the debtor to lower payments and interest rates on a monthly basis. This allows the debtor to regain control of their finances and repay their debt.

DMPs are regulated by the U.S. Federal Trade Commission, and different states have the power to regulate DMPs individually to protect state citizens from fraud.

John has accumulated a lot of credit card debt and is struggling to make his monthly payments. He decides to enroll in a debt-management plan with a credit counseling agency. The agency negotiates with John's creditors to lower his interest rates and monthly payments. John makes a monthly payment to the agency, which then distributes the funds to his creditors. With the help of the DMP, John is able to pay off his debt and regain control of his finances.

Another example is Sarah, who has multiple debts and is finding it difficult to keep track of all her payments. She enrolls in a DMP, which consolidates her debts into one monthly payment. This makes it easier for her to manage her finances and pay off her debt.

These examples illustrate how a debt-management plan can help individuals who are struggling with debt to regain control of their finances and pay off their debts in a manageable way.