Credit counseling: often the best first call
A certified counselor reviews your budget and explains your choices. A debt management plan may lower your card rates while you repay in full.
We list this option because it may be right for you, even though it isn't something we refer. You can go directly to a reputable agency.
How a debt management plan works
According to the NFCC, you make one monthly payment to the agency for about 36 to 60 months, and the agency pays your creditors. Creditors often lower interest rates and waive fees while you're enrolled.
Trade-offs
- You'll likely pay a setup fee and a monthly fee, though waivers may be available
- You generally must close some or all enrolled credit card accounts
- Loans typically can't be included
- It takes three to five years of steady payments
Choosing an agency
The FTC cautions that nonprofit status alone doesn't guarantee low fees or legitimacy. Check the organization's fees and credentials, and ask how counselors are paid.
Not sure which option fits? Answer three private questions in the option finder, or compare every option. Ready to talk? Get matched.
Questions
Is credit counseling free?
The NFCC describes counseling through its certified agencies as free. Debt management plans usually have fees.
Does a debt management plan reduce what I owe?
Generally no. It aims to reduce interest and fees so you can repay the full balance faster.