A debt management program differs from a debt resolution program by a few ways. The debt amount owed is not reduced with the debt management program but with a simple interest rate reduction program. You will combine all your debts and make one payment each month. Average rate reduction can vary between from 6-10%. This type of program has a lessen effect on your credit score because monthly program payments will still be distributed among all of your enrolled accounts. However, your credit rating may have an adverse effect.

A debt resolution program has a similar approach where your debts will be combined with one monthly program payment but your debts are negotiated for less than what you owe. The average settlement ranges between 40-60% debt reduction. In debt resolution, your account will be handled by an attorney, paralegal and legal assistants. A creditor tends to treat an account differently when they know they must obey all of the laws governing them, and an attorney is going to be familiar with the laws of your state, which can definitely give you an advantage.