Best Debt Management Companies

Overwhelmed by debt? The best debt management companies slash interest rates and remove fees. Explore your top options in this article.

A DMP or debt management plan is a 3 to 5-year repayment plan that can help you manage your debts more easily.

Counselors and debt professionals negotiate with creditors to reduce your interest, eliminate penalties and fees, or adjust terms.

But not all debt management companies are equal. In this guide, learn about the top companies and agencies that can help you out.

Top 8 Debt Management Companies

The best debt management companies offer free consultations to help you get started. Be sure to note the fees and the upsides and downsides of each.

ACCC: Best Overall

American Consumer Credit Counseling (ACCC) is a leading nonprofit organization offering debt relief options, including debt management. Established in 1991, it can help reduce your interest rates and monthly debt payments by 30-50%.^[1]

Aside from DMPs, counselors can also give you advice on budgeting, improving credit, and exploring bankruptcy options.

Fees:^[2]
The fees depend on your state. On average, clients pay only $25/mo after setting up their DMP. That said, ACCC can waive your fees if you experience financial hardship.

• One-time enrollment fee: $39
  
• Monthly fee: $7 per account (min. of $7; max. of $70)

Pros + Cons:

If you're looking for a team that's available regardless of the time of day, check out this next option.

MMI: for 24/7 Counseling

Money Management International (MMI) is another nonprofit organization on the list, with roots dating back to 1958. Since then, it has helped repay almost $10 billion of debt.

On average, the debt relief company can reduce your interest rates to less than 8%. What's more, clients who have completed their DMP raise their credit scores by 84 points.^[5]

You can sign up or call MMI for assistance and counseling anytime. Counselors are available around the clock to help you out.

Fees:^[6]
Unlike ACCC, MMI doesn't list its exact fees. However, on average, MMI clients pay:

• Average setup fee: $33 (max. of $75)
  
• Average monthly fee: $25 (max. of $59)

Pros + Cons:

Maybe you're on a budget and is looking for the most affordable DMP. Credit.org may be able to help you out.

Credit.Org: for Low Fees

Established in 1974, Credit.org is one of the longest-running organizations offering debt management. Every year, it helps over 25,000 people through its services.^[8]

A team of more than 50 financial counselors can assist you in enrolling your debts in a DMP. Additionally, Credit.org has one of the lowest fees, which can be waived if you can't afford them.

Fees:^[9]
The monthly fee depends on state regulations. But you can budget the following:

• One-time setup fee for enrollment: $0–$50
  
• Monthly fee: $0–$75

Pros + Cons:

Maybe apart from paying off your debts, you want to learn more about how to manage your finances. DMCC may be your best bet.

DMCC: for Financial Education

Debt Management Credit Counseling Corp. (DMCC) is a nonprofit corporation that offers DMPs. Based in Florida, it has paid off over $500 million in debts of over 100,000 clients.

On average, clients pay 8.2% interest rates on their debts through the DMP. That said, DMCC can lessen your debt payments by as much as 24%.^[12]

Additionally, DMCC features DMCC University, where you can browse free videos, seminars, workshops, and online courses about financial topics.

Fees:
DMCC does not specify its monthly fees. The set-up fee for their debt management plan ranges from $50 to $100, but military personnel and their families may qualify for a fee waiver.^[13]

Pros + Cons:

Do you only have credit card debts to worry about? InCharge Debt Solutions is the expert to go for.

Incharge Debt Solutions: for Credit Card Debt

InCharge Debt Solutions has helped over a million people since 1997, settling over $3.4 billion in debt.^[15]

On average, it can reduce credit card interest to 8.4%. But depending on negotiations, interest rates can go as low as 2%.^[16]

That said, InCharge Debt Solutions primarily focuses on credit cards. If you owe other unsecured debts, like personal loans and medical bills, you can ask about them during the consultation.

Fees:^[16]
InCharge Debt Solutions doesn't specify its monthly fees. But on average, clients pay $33/mo. The one-time setup fee is $75, though this varies by state.

Pros + Cons:

What if saving most of your payments is your main goal for a DMP? Cambridge can help you out.

Cambridge: Highest Potential Savings

Cambridge started in the industry in 1996. On average, its DMP clients lessen the interest rates on their credit cards down to 8%, sometimes up to 0%.

Additionally, you can save as much as 25% of your monthly debt payments. And you can settle debts in as fast as 42 months.^[18]

On top of credit cards, your DMP can include the following debts:

• Unsecured personal loans
  
• Personal loans secured by household items, such as furniture, appliances, etc.
  
• Past-due balances on telephone bills, cellular phone bills, electric bills, etc.
  
• Student loans
  
• Collection accounts
  
• Lines of credit
  
• Disconnected utility bills
  
• Medical bills
  
• Repossessions (if the items have been resold and an unpaid balance remains)

Fees:^[19]
Cambridge doesn't specify its fees, but on average, clients pay:

• Average initial fee: $40 (max. of $75)
  
• Average monthly fee: $30 (max. of $50)

Pros + Cons:

Although Cambridge can help with student loans, Greenpath may be the better option if this is the only debt type you need to enroll.

Greenpath: for Student Debt

GreenPath has been in the industry for over 60 years. In 2023 alone, over 9,000 clients have fully settled their debts, paying off over $170 million through GreenPath's DMP.

If you have student debts, you may qualify for GreenPath's SAVE program. GreenPath will assist you in restructuring your student loans to make them more manageable.

The SAVE program reduces your monthly payments based on your income. You could end up paying only 5% of your discretionary income, down from 10%. Plus, with the SAVE program, you won't be charged monthly interest.^[21]

Fees:^[22]
On average, GreenPath's clients pay:

• One-time enrollment fee: $35
  
• Monthly fee: $28

Fees vary per state regulation. GreenPath can waive fees if you cannot afford them.

Pros + Cons:

If you're looking for the experts best at negotiations, check out this next option.

Consolidated Credit: for Creditor Negotiations

Consolidated Credit has been in the industry since 1993. It offers DMPs and has helped over 10 million people since it started.

Additionally, Consolidated Credit works with more than 1,600 creditors and retailers nationwide.^[24] If you owe balance to small retailers or creditors who aren't on the list, Consolidated Credit can communicate with them on your behalf.

Supported unsecured debts include most credit cards, collection accounts for unpaid medical bills, and payday loans.

Fees:^[25]
Consolidated Credit doesn't specify its fees. However, on average, clients pay $40/mo (max. $79, varies per state).

Pros + Cons:

What Is A Debt Management Plan?

A debt management plan (DMP) is a structured repayment plan created by debt management companies or nonprofit agencies.

The plan is tailored to your specific debts and financial capacity, with the goal of helping you pay off your enrolled debts in 3-5 years.

You'll make a single monthly payment, which counselors will distribute to your creditors on your behalf.

How Do Debt Management Companies Work?

Debt management companies provide you with a personalized debt management plan to help you manage your debts more easily. The process starts with a free consultation.

1. Free consultation
   You will be matched with a counselor or specialist who will ask about your outstanding debt statements and income. They will qualify for which debts you can enroll.

2. Personalized debt management plan
   The counselor will create a personalized debt management plan you can afford. The plan may come with a lower monthly payment than your current combined monthly debt payments.

3. Creditor negotiations
   Experienced counselors and negotiators will negotiate with your qualified creditors. They will send a proposal or correspond with your creditors to enroll your debt in a DMP.

4. Monthly payments
   You will make monthly payments based on your DMP and initial consultation. Debt management companies will disburse the payments to your creditors.

Note that with DMPs, counselors negotiate to eliminate or reduce interest, penalties, and other fees. Not the principal of your debts. Creditors may also agree to adjust the terms.

That said, DMPs only cover unsecured debts, some including student loans. You can't enroll any debt secured by collateral, like your home and auto loans.

On the fence about DMPs? Weigh the pros and cons to decide.

Pros And Cons Of Debt Management Plans

Pros:

• Reduce your interest rates by up to half
  
• Eliminate penalties and other fees
  
• Get financial advice from experienced counselors
  
• Pay off debts faster
  
• Focus on one monthly payment only
  
• Flat fees (not percentage-based, unlike with debt settlement)
  
• May improve your credit over time

Cons:

• Principal debt remains the same
  
• Accounts are closed down
  
• Temporary credit impact during enrollment
  
• 3–5 year commitment
  
• Not all creditors may agree to the DMP
  
• Missed payments can end your benefits with the creditors

Given the cons of DMPs, how do you know if they are worth it?

Is It Worth Doing A Debt Management Plan?

Debt management plans are beneficial if you want to restructure your debts. By eliminating fees and reducing interest, you can lower the overall cost of your debt in the long run.

Additionally, you can receive valuable advice from experienced counselors. A free consultation allows you to discuss your current financial challenges and explore available means to solve them.

However, while a DMP can reduce other debt-related costs, it does not decrease the original amount you owe. And if you have multiple debts, you will still need to settle them all over the next five years.

Despite this, considering a DMP can be worthwhile, as it helps you pause other accumulating costs related to your debts.

Methodology

There are more agencies and companies offering DMPs, but we've narrowed down this list based on the following:

Fees
All the options in this list are nonprofits dedicated to promoting financial literacy. As a result, they cap their fees, charging less than $100 for a one-time setup fee and even less for monthly fees.

Additionally, these nonprofits are willing to waive fees. If you need help with their fees, they may administer and set up your DMP for free so you can focus on your monthly payments.

Years in the industry
These nonprofits offering DMPs have over 2 decades of experience.

Accreditations
Most options in the list are accredited or members of large organizations and certifying bodies like:

• Financial Counseling Association of America (FCAA)
  
• National Foundation for Credit Counseling (NFCC)
  
• Social Current's Council of Accreditation (COA)

These credit counseling agencies and debt management companies are regularly assessed and vetted for credibility, regulatory and state compliance, and service.

Bottom Line

Talking to creditors can be nerve-wracking when you have difficulty paying off your debts. Having professionals to bridge that gap may lessen the stress.

Reputable companies and agencies have solid experience in creditor negotiations. They can negotiate with your previous retailers, banks, or lenders to let you settle your balances with lower interest and adjusted terms.

That said, once you enroll in a DMP, it's best to complete it so you can slowly become debt-free and rebuild your credit over time.

References