Best Debt Management Plans – A Step in the Right Direction
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According to LendingTree, consumer debt has continued to rise steadily since 1999 — and now accounts for a whopping $1.166 trillion in outstanding credit card balances alone. Especially when you consider that interest rates have also risen (and, as of this writing, average 24.84% APR), it’s clear that many consumers are facing a mountain of credit card debt.
Of course, debt goes beyond just credit cards. Other types of debt, like auto loans, personal loans, and unpaid medical bills, can also add to the debt you may face. In these situations, even the most well-meaning budgeters may struggle with money management since juggling various debt payments, late fees, and interest charges can be difficult to stay focused on.
If any of these scenarios feel familiar, exploring debt management plans may be worthwhile. Getting a debt consolidation loan or enrolling in a debt management program can help you get many benefits, from debt relief to lower interest rates, a simplified repayment plan, and even financial education from a certified credit counselor. Keep reading for an overview of ten of the best debt management companies.
In this article
Overview of the best debt management plans
- Best for well rounded financial education: National Foundation for Credit Counseling
- Best for accredited debt relief option: InCharge
- Best for low set-up fees and capped monthly payments: GreenPath
- Best for a debt-focused negotiator: Freedom
- Best for top rated debt relief services: Money Management International
- Best for extra help with payday loans: Debt Management Credit Counseling Corp.
- Best for well-rounded educational resources: Americor
- Best for additional help narrowing down your debt options: TurboDebt
- Best for tackling unsecured debts: Simple Debt Solutions
- Best for lump sum settlements: Accredited Debt Relief
Relieve $25k+ in Credit Card Debt or Personal Loan Debt With TurboDebt
- Relieve $25k+ in credit card debt or personal loan debt with this special relief program.
- TurboDebt has a Trustpilot rating of 5/5 based on 1288 reviews
- Subject to qualification and approval. $1,500 monthly income required.
- Apply in 5 minutes. If you qualify, chat online with a friendly online debt representative.
Summary of best debt management plans
Debt management plans | BBB Rating | TrustPilot Rating | Cost |
A+ | N/A | $50 setup fee, ~$25/month | |
A+ | 4.7 | $75 setup fee, average fee of $33/month | |
A+ | 3 | $35 setup fee; no more than $75/month | |
A+ | 4.6 | 15% to 25% of total enrolled debt | |
A+ | 4.7 | Average $33 setup fee, $25 monthly fees | |
A+ | N/A | $50 average enrollment, $37 average monthly payment | |
A+ | 4.8 | Up to 29% of total debt | |
A+ | 4.9 | $0 | |
A+ | 4.9 | Between 19% and 25% of enrolled debt | |
A+ | 4.9 | 15% to 25% of total debt enrolled |
Millions struggle with debt. We help them move on with their lives.
- End your debt stress with a proven, affordable debt relief program. Our consultants will guide you through every step.
- Everyone’s financial situation is different. That’s why we start by giving you a free debt analysis and create a custom solution based on your unique needs and goals.
- Let us help you solve your debt problems and move forward with improving your overall financial health.
Not available in CO, HI, ND, OR, RI, VT, WA, WV, WY, MN, DE, IA.
Best for well rounded financial education: National Foundation for Credit Counseling
Pros & cons
Pros
- Ideal for unsecured debts.
- Solid reputation.
Cons
- Set-up fees.
- Monthly fees.
Costs: $50 setup fee, ~$25/month
Commonly abbreviated as the NFCC, the National Foundation for Credit Counseling is a non-profit organization dedicated to helping families and individuals access counseling services and financial education. They offer various services for consumers, including credit counseling, debt management plans, financial education, housing counseling, bankruptcy counseling, and student loan counseling. The NFCC also offers programs focused on offering active military and veterans financial counseling services.
When you sign up for credit counseling with the National Foundation for Credit Counseling, you can work with certified financial counselors who will help you audit your finances, understand your situation, and develop a budget that truly works for you. Their debt management plans are specifically designed to help tackle unsecured debt. As a part of this process, the NFCC will help negotiate lower interest rates and even get fees waived as they help you devise a strategy to repay your debt.
The NFCC is known for its expertise, partly thanks to its non-profit status. As a non-profit organization, they are more focused on helping their clients than making a buck, which adds to their reputation and reliability. Regarding pricing, the National Foundation for Credit Counseling offers most of its services at a low cost or, in some cases, for free.
The National Foundation for Credit Counseling is the oldest non-profit and has a solid reputation for providing excellent service. The NFCC is a trusted financial educator with a proven track record for helping consumers tackle various financial issues. It makes them a top choice for anyone looking for a debt management plan to get you out of (and help you stay out of) debt.
Best for accredited debt relief option: InCharge
Pros & cons
Pros
- Full suite of debt management services.
- Solid customer reviews.
Cons
- Setup fees in addition to monthly fees.
Costs: $75 setup fee, average fee of $33/month
Another popular and well-known non-profit organization helping consumers tackle debt is InCharge, also known as InCharge Debt Solutions. InCharge offers many of the same services as the National Foundation for Credit Counseling since they are an accredited member of the NFCC. However, they do not have a specialty program for the military and veterans. Instead, their services revolve around credit counseling, debt management, financial education, housing counseling, bankruptcy counseling, and student loan counseling.
Like other debt management companies on this list, InCharge mainly assists consumers with debt through debt management plans and confidential credit counseling. InCharge’s debt management plans can help simplify debt repayment by helping reduce fees and interest rates and consolidating various payments into one payment.
When you work with InCharge, you’ll gain insight from a certified financial counselor who will work with you to devise a personalized solution to your debt problems. As an accredited member of the NFCC, InCharge is held to very high standards, ensuring high quality and service is offered to everyone they assist.
InCharge boasts a 96% customer satisfaction rating and an average interest rate of 8.4% for those using its program. They also have a TrustPilot review of 4.7 out of 5 stars, based on over 2,000 reviews. While they charge a setup fee, you can schedule a free consultation before committing to the program, which usually takes three to five years to complete.
Visit InCharge
Best for low set-up fees and capped monthly payments: GreenPath
Pros & cons
Pros
- Experts in credit counselling services.
- Offers a wide range of financial literacy tools and resources.
Cons
- Set up fee.
- The repayment plan lasts upto 5 years.
Costs: $35 setup fee; no more than $75/month
Yet another non-profit organization that exists to help consumers achieve financial wellness is GreenPath, sometimes called GreenPath financial wellness. GreenPath mainly specializes in credit counseling and debt management programs; however, they also provide financial literacy tools and resources as part of their financial education services.
Like InCharge, GreenPath is accredited by the National Foundation for Credit Counseling. This ensures that it has oversight and operates in its clients’ best interests. Its easy-to-use website offers a few handy tools to assess your financial situation, and your account can also be managed through this helpful online portal.
With a debt management program from GreenPath, you’ll gain access to a lower monthly interest rate and only one payment to worry about, making it easier to tackle your debt in a faster period of time. Each financial counselor with GreenPath is certified and will work with you one-on-one to find the right strategy to manage your debt and budget best.
Typically, a debt management program with GreenPath will last anywhere from 36 to 60 months. Your initial counseling session with GreenPath is free, but if you choose to enroll in a debt repayment plan, you’ll be subject to a setup fee of $35 and a minimum monthly fee of $28. They also promise a maximum monthly fee of no more than $75; however, depending on your income, you may qualify for a lower price.
Visit GreenPath
Best for a debt-focused negotiator: Freedom Debt Relief
Pros & cons
Pros
- Useful client dashboard.
- No upfront settlement fees.
- A Certified Debt Consultant to assist you.
Cons
- Not available in all states.
- Fees can be as high as 25% for settled debt.
- Cannot assist with Federal student loan debt, mortgages or auto loan debt.
Costs: 15% to 25% of total enrolled debt
Freedom, also known as Freedom Debt Relief, is one of America's largest debt relief companies. They mainly offer three services to help customers get out of debt: debt settlement services, a customized debt resolution plan, and financial education. Debt settlement from Freedom involves negotiating on your behalf to reduce the total amount of debt owed. From there, a lump-sum payment (which is covered through monthly payments to a dedicated account) allows you to reduce your debt significantly.
Freedom’s customized debt resolution plans consider various personal financial indicators to determine the best strategy to help you achieve debt relief. This involves an analysis of all of your outstanding debts, as well as your income and expenses. Freedom also offers financial education tools and resources to understand budgeting and debt management better. These tools help you stay out of debt and not revert to old habits once you’ve successfully paid off your debts.
Unlike some of the non-profit organizations on this list, Freedom Debt Relief is a commercial company. This means that its prices and fees will differ slightly from an organization like InCharge or GreenPath. Freedom typically charges between 15% and 25% of the total enrolled debt, which can be much higher than the monthly costs and one-time setup fees associated with other options on this list. Even so, if you have a large amount of debt, paying 15% of the total cost of your debt and then having that total amount reduced by 50% can work out in your favor.
As far as credibility goes, Freedom Debt Relief has a variety of endorsements pointing toward its reliability and effectiveness. Freedom has a TrustPilot rating of 4.6/5 stars from close to 40,000 reviews. They also have an A+ Better Business Bureau (BBB) rating.
Visit Freedom Debt Relief
Or read Joywallet's review of Freedom Debt Relief.
Best for top rated debt relief services: Money Management International
Pros & cons
Pros
- Available in all 50 states.
- Offers a wide range of debt management services.
Cons
- Set up fees.
Costs: Average $33 setup fee, $25 monthly fees
Money Management International is a non-profit organization offering its clients debt and credit solutions. These include debt management, repayment plans, credit counseling, and one-on-one credit reviews. Money Management International also offers various additional counseling services, including disaster relief, bankruptcy, and student loan counseling.
When you enroll in a debt management plan with Money Management International, they will reach out on your behalf and negotiate with creditors to lower your interest rates and overall debts owed. From there, if your creditors accept the proposed plan, you’ll pay one simple monthly payment to Money Management International.
Money Management International is available in all 50 states, and your initial debt analysis and consultation are free. From there, customers generally pay an average of $33 for their setup fee and about $25 monthly fees. These numbers can, of course, vary from person to person, dependent on your financial situation. It’s worth noting that your credit score may dip when using a debt management plan through a company like Money Management International.
From 1,800+ reviews, Money Management International has received an average of 4.7 out of 5 stars. Past and existing customers praise Money Management International’s friendly service and ability to find affordable monthly payments. Some of their negative reviews have related to auto-drafting services for monthly payments, which customer service has addressed via comments on their website. They also have an A+ rating from the Better Business Bureau.
Visit Money Management
Millions struggle with debt. We help them move on with their lives.
- End your debt stress with a proven, affordable debt relief program. Our consultants will guide you through every step.
- Everyone’s financial situation is different. That’s why we start by giving you a free debt analysis and create a custom solution based on your unique needs and goals.
- Let us help you solve your debt problems and move forward with improving your overall financial health.
Not available in CO, HI, ND, OR, RI, VT, WA, WV, WY, MN, DE, IA.
Best for extra help with payday loans: Debt Management Credit Counseling Corp.
Pros & cons
Pros
- Suitable for payday loans.
- Offers a wide range of services.
- Monthly payment remains the same throughout the tenure.
Cons
- Enrolment fees.
Costs: $50 average enrollment, $37 average monthly payment
Frequently abbreviated as DMCC, the Debt Management Credit Counseling Corp. focuses on helping individuals reduce debts, pay off debts faster, and stop collection calls. The DMCC offers various products and services, including debt management plans, credit counseling, housing counseling, and bankruptcy counseling.
The DMCC also offers a unique service to help individuals break the payday loan cycle. As a part of this program, consumers have six to twelve months to pay off their payday loans rather than being forced to repay the loan on the same day as their paycheck.
Even if you must be on a debt repayment plan through the DMCC for the full five years advertised, your monthly payment will not change. This, combined with a lower interest rate negotiated on your behalf, can help you pay off your debts faster, particularly if your income increases during those five years.
Past and current customers praise how helpful lowering their interest rate was in helping them pay off their debts more quickly and effectively. Additionally, each financial counselor that works with the Debt Management Credit Counseling Corp. is accredited by both the National Association of Certified Credit Counselors (NACCC) as well as the Financial Counseling Association of America (FCAA).
Best for well-rounded educational resources: Americor
Pros & cons
Pros
- Offers a wide range of debt management services.
- Several resources for financial literacy.
- Short plan tenure between 20 to 48 months.
Cons
- High fees.
Costs: Up to 29% of total debt
Americor is one of the more well-known financial services companies on this list, at least as much as a financial services company can be a household name. Americor offers a few different services to consumers, including debt settlement, consolidation, personalized debt management plans, and financial education.
When it comes to getting started with Americor, your initial consultation to learn more about debt relief is completely free of charge. From there, if you enroll in a debt management plan, you can expect to be debt-free in anywhere from 20 to 48 months, depending on your overall financial situation. Since its founding, Americor has helped relieve more than 200,000 Americans of more than $2 billion in debt.
Americor’s blog is a particularly robust area to learn more about debt management, budgeting and ultimately increase your financial literacy. Americor tackles a wide range of topics on its blog, from saving tips and debt relief tactics to how to understand your credit score and how to read your credit report. They even have a glossary of common personal finance terms so that you can better understand the ins and outs of your conversations with your debt relief counselor.
While you can find more than a few horror stories about Americor online, it’s worth noting that Americor is a Better Business Bureau-accredited business with a rating of A+. Additionally, they have a strong TrustPilot review of 4.8 out of 5 stars, averaging 15,637 reviews.
Visit Americor
Best for additional help narrowing down your debt options: TurboDebt
Pros & cons
Pros
- Helps choose the right plan as per your needs.
- Short plans make it easier to become debt-free.
Cons
- An additional monthly cost will impact your budget.
- Doesn’t provide much information about which service providers it works with.
Costs: $0
If you’re looking for a service to help connect you to other debt relief services companies, look no further than TurboDebt. They are focused on referring customers to other organizations that can help them tackle unsecured debts, including credit card debt, medical debt, personal loan debt, and even payday loans.
The free consultations offered by TurboDebt are one of their biggest benefits. This allows you to explore various debt relief options, and unlike a consultation with another company on this list, it won’t be solely focused on an individual program or business. Note that your consultation will not be conducted by a credit counselor but will instead be fielded by a sales rep.
While working with a sales rep may sound like it has drawbacks, keep in mind that once you’re referred to a specific debt relief company, in most cases, you’ll be working with a credit counselor. Especially if you need help comparing various options, speaking with someone independent from one particular company may give you a helpful perspective — assuming you aren’t concerned that they’re thinking more about their commission than your problems.
TurboDebt has been advertised heavily on TikTok and Snapchat, but that doesn’t mean it’s not a legit service. TurboDebt has a 4.9 TrustPilot rating from more than 11,000 reviews.
Visit TurboDebt
Or read Joywallet's review of TurboDebt.
Millions struggle with debt. We help them move on with their lives.
- End your debt stress with a proven, affordable debt relief program. Our consultants will guide you through every step.
- Everyone’s financial situation is different. That’s why we start by giving you a free debt analysis and create a custom solution based on your unique needs and goals.
- Let us help you solve your debt problems and move forward with improving your overall financial health.
Not available in CO, HI, ND, OR, RI, VT, WA, WV, WY, MN, DE, IA.
Best for tackling unsecured debts: Simple Debt Solutions
Pros & cons
Pros
- Offers debt consolidation loan.
- Has a low minimum debt requirement.
Cons
- High fees.
- Not available in all states.
Costs: Between 19% and 25% of enrolled debt
As the name suggests, Simple Debt Solutions is focused on one thing and one thing only: debt relief. They offer debt consolidation loans to consumers starting at $10,000 and maxing out at $100,000, all with flexible terms to fit your budget. They are a relatively new company, founded in 2020, and are only available in 36 states.
In addition to the minimum amount of debt consolidation required, it’s important to note that Simple Debt Solutions will only help settle accounts with an outstanding balance of at least $450. One thing that makes this debt relief company unique is that they don’t charge their fees based on the total amount of settled debt. Instead, they calculate their fees according to how much a customer saves once a debt relief plan is accepted.
Although they are a relative newcomer to this space, they offer a few different perks that help establish their credibility. They are accredited by the International Association of Professional Debt Arbitrators (IAPDA). Even though their debt specialists are accredited, they don’t charge a monthly consultancy fee like many other options. They also offer a money-back guarantee, another way you may get peace of mind using their service.
Beyond their debt settlement services, Simple Debt Solutions also provides a marketplace that allows users to compare and review debt consolidation loans they may qualify for. This feature is similar to the suggestions you may get checking your credit score on CreditKarma.com and can be a helpful reference point as you plan your debt repayment journey.
Visit Simple Debt Solutions
Best for lump sum settlements: Accredited Debt Relief
Pros & cons
Pros
- No upfront fees.
- Short plan duration.
Cons
- Minimum debt amount of $10,000.
- Not available in all states.
Costs: 15% to 25%
The main services offered by Accredited Debt Relief include debt consolidation, debt resolution, and credit counseling. Since their founding, they have helped thousands of individuals reduce their overall debt owed by up to 50%. While they’re not available in all 50 states, one of the big perks of using Accredited Debt Relief is that they also offer access to an FDIC-insured savings account for use while you pay off your debts.
The focus of Accredited Debt Relief is unsecured debt. To qualify, you must have at least $10,000 in unsecured debt and live in one of the 31 states (including Washington, D.C.) where the company operates. If you want to check your eligibility, https://www.accrediteddebtrelief.com/state/ is a great place to check that you qualify.
When you work with Accredited Debt Relief, you’ll first have a free consultation with a certified debt specialist to discuss your financial situation and options. From there, the specialist will go to bat for you and negotiate with your creditors and loan companies to reduce the amount you owe hopefully.
By working through Accredited Debt Relief, you can expect to pay off your debts in between one and four years. Customer reviews of the service are quite positive, and they also have an A+ accreditation with the Better Business Bureau (BBB). They are worth considering if you’re looking for a company to help negotiate lump-sum settlements on your behalf.
Visit Accredited Debt Relief
Or read Joywallet's review of Accredited Debt Relief.
Relieve $25k+ in Credit Card Debt or Personal Loan Debt With TurboDebt
- Relieve $25k+ in credit card debt or personal loan debt with this special relief program.
- TurboDebt has a Trustpilot rating of 5/5 based on 1288 reviews
- Subject to qualification and approval. $1,500 monthly income required.
- Apply in 5 minutes. If you qualify, chat online with a friendly online debt representative.
Why should (or shouldn’t) you use
In most instances, debt management plans and debt relief companies should only be used as a last resort. If you’ve been struggling with making payments, dealing with collectors, or missing deadlines, it may be time to discuss your options with a credit counselor. On the other hand, there are certain scenarios where you can weigh the pros and cons of the snowball method or avalanche method of debt pay down, set up your budget, and take matters into your own hands.
Does a debt relief program hurt credit score?
One of the biggest drawbacks of using a debt relief program is that as you stop making payments, it immediately shows on the credit report. Whenever a payment is missed, it shows on the credit report and this may lead to late fees and penalties, pushing the total outstanding balance higher. You may also get calls from credit card companies and debt collectors. However, all of this is temporary.
FAQs
Are these companies a scam?
If you’re already in a lot of debt, it’s not uncommon to be served many ads on social media about debt reduction or elimination. Make sure to check the Better Business Bureau (BB) and only work with debt settlement companies that have an A+ rating to avoid scams. Trustpilot can also be a helpful resource.
Do you owe taxes on debt relief?
This can vary from state to state, so it’s best to consult a tax professional in your area to fully understand your tax liabilities from debt relief programs on this list.
Are these companies a guarantee?
Unfortunately, there’s no guarantee that your debts will be able to be negotiated down, as creditors may not choose to agree to the terms set forth by the debt relief company working on your behalf. However, non-profit debt management companies generally have a bit more sway than others, so if you’re concerned about this, it may make sense to work with a 501c3.
Millions struggle with debt. We help them move on with their lives.
- End your debt stress with a proven, affordable debt relief program. Our consultants will guide you through every step.
- Everyone’s financial situation is different. That’s why we start by giving you a free debt analysis and create a custom solution based on your unique needs and goals.
- Let us help you solve your debt problems and move forward with improving your overall financial health.
Not available in CO, HI, ND, OR, RI, VT, WA, WV, WY, MN, DE, IA.
The bottom line
If you’ve been struggling with debt paydown for a while, it may be time to contact one of the above services to set up a debt management plan or receive credit counseling. Especially with interest rates soaring, having an organization or business negotiate lower interest rates on your behalf can be a major win in helping to improve your financial standing.
Ultimately, it’s important to weigh the pros and cons of debt relief since it can open you up to tax liabilities and hurt your credit score in the short term. Even so, if you need extra help and accountability, working with a debt relief company and credit counselor can be a major step in the right direction when it comes to improving your finances.
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Writer
Brent Ervin-Eickhoff is a Chicago-based writer, stage director, and filmmaker with a background in digital marketing and content creation. In addition to Joy Wallet, Brent has written for Complex, Volkswagen, HowlRound, Picture this Post, and Third Coast Review, among others. He currently serves as the Associate Director of Marketing for Content Creation at Court Theatre at the University of Chicago. Brent graduated from Ball State University with Academic Honors in Writing.
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