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Credit Counseling

Nonprofit credit counseling agencies can set up a debt management plan (DMP): you make one monthly payment to the agency, which distributes it to your creditors, often at a reduced interest rate they've negotiated in advance. It's a different mechanism than settlement — you generally repay the full balance, just on better terms.

Sound familiar?

  • Want to keep paying the full balance, just more affordably
  • Prefer a nonprofit, membership-organization structure over a for-profit company
  • Want budget counseling in addition to debt repayment help
  • Weighing a DMP against settlement or consolidation

Options people in this situation weigh

  • An NFCC- or FCAA-accredited nonprofit credit counseling agency (look for these accreditations specifically)
  • A debt management plan, typically 3-5 years, at a reduced interest rate
  • One-time budget/financial counseling without enrolling in a repayment plan
  • Comparing the total cost and timeline of a DMP against settlement before choosing

See what applies to you

The free check-in takes about two minutes and gives you a clear read on your options.

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