10
Top Debt Management Companies To Consider in 2024
Choosing a debt management company can be the first step toward eliminating debt and getting into a better financial position. However, choosing a reputable company is essential. Without doing some research, you could end up spending more than you need to or even become a victim of fraud.
If you’re ready to tackle your debt, this guide can help. It will go over what you should look for in a debt management company, the benefits of working with one, top companies to work with and more.
If you’re a good credit card user, you already know how payment history, credit utilization and the length of your credit history affect your credit score.
But millions of Americans overlook these easy tips that could help them manage credit card debt even more wisely.
Read more to boost your credit knowledge and keep your credit score in check.
Choosing a debt management company doesn’t have to be difficult. You should keep in mind four important details:
Now, just as there are things to look for in a good debt management company, there are also items that reflect that a company could be a scam or cost you more than expected.
Watch out for these red flags to keep yourself safe:
Finding a good debt management company can be extremely helpful when you are struggling with debt. A debt management company can help you reduce stress by setting up a plan for repayment that you can adhere to. And, because this company may be able to help you get lower interest rates and create a manageable payment plan, working together could get you back on track financially sooner than you’d thought.
Keep in mind that debt management solutions may positively or negatively impact your credit. Making payments on time, reducing what you owe, and reducing your credit utilization rate will all help raise your credit score. However, if you get any accounts paid off for less than you owe or you close an account, your credit score may drop. Ultimately, though, working toward having no debt at all in the future is in your best interest.
How can you find a good debt management company to work with? We’re here to help. We have assembled a list of the top five debt management companies based on factors such as cost, the services offered, customer satisfaction and industry reputation.
Wondering which debt management company to choose? We’ve selected five that make repaying your debt simple. All five are nonprofit organizations and have an A+ rating with the Better Business Bureau.
American Consumer Credit Counseling offers multiple services including debt management programs, debt consolidation, credit counseling, bankruptcy counseling, debt settlement and housing counseling. It charges a $39 fee to enroll and then $7 per month, but those fees are subject to change. Importantly, this nonprofit runs in every state and has had only six complaints in the last three years and has 4.98/5 stars with the BBB.
Credit.org is available in all 50 states and offers a number of services to its clients. This includes debt management programs, debt settlement, debt counseling, bankruptcy counseling, student loan counseling, reverse mortgage counseling, credit counseling, homebuyer counseling and foreclosure assistance. With a wide range of programs and services, it can assist with most circumstances. The enrollment fees range from $0 to $50, and monthly fees can be anywhere from $0 to $75. Credit.org has zero negative reviews on BBB and 4.9/5 stars.
Money Management International has more complaints than some debt management companies on this list (14 in the last three years), but it’s available in all 50 states and is legitimate. MMI offers credit counseling, debt management plans, student loan counseling, bankruptcy counseling, foreclosure counseling, reverse mortgage counseling, post-disaster financial recovery counseling and financial workshops. It does charge fees based on the size of the debt, but the average is $33 to set up the plan and $25 a month. It sets the maximum fees at $75 for enrollment and $59 per month for debt management plans. Consumers rate it highly on BBB (4.89/5 stars), TrustPilot (4.6) and Google Reviews (4.8).
GreenPath offers debt management programs, debt counseling, student loan counseling, foreclosure prevention, reverse mortgage counseling and homebuyer counseling to its clients. Unlike some programs, the nonprofit’s fees do depend on the state and the amount of debt to be managed. GreenPath reports that its average enrollment fee is $35, and the monthly fee is usually around $28. GreenPath has some complaints against it — 28 in the last three years — and lower ratings with the BBB (4.67/5 stars) and TrustPilot (3 stars). But, it’s available in all 50 states, so it is widely accessible.
InCharge Debt Solutions is in our top five because it offers a number of helpful services including credit counseling, debt management programs, debt consolidation programs, housing counseling, bankruptcy counseling, credit card debt forgiveness, foreclosure prevention counseling and eviction help. It has rates in line with other providers, including free counseling, a $75 fee to set up a debt management plan and monthly fees that average $33 per month. InCharge Debt Solutions has had nine BBB complaints in the last three years. It’s only available in 16 states, which may mean that it’s not an option for everybody. The clients who do use it are relatively satisfied, giving it 4 stars on Google Reviews, 3.46/5 on BBB and 4.7 on TrustPilot.
Listen, we know it’s tough out there. But there’s no shame in asking for help.
These companies make it easy to help yourself and your bank account.
A debt management company groups your debts together into a single plan, allowing you to pay back what you owe with a single monthly payment. Usually, the plan is between three to five years in length and may have reduced interest to help you get ahead.
Usually, debt management plans cost between $0 and $35 to set up the plan. Then, you may have a monthly fee on top, but the exact fee will vary based on the plan. Be sure to discuss the fees associated with a debt management plan upfront before you sign a contract.
The positives of working with a debt management company include having support when negotiating reduced interest rates or combining all your debts into a single plan with a monthly payment. Downsides of the DMP may include fees for participating in the program, the ineligibility of certain debts (such as student loans) and the requirement to close credit cards that are part of the plan.
Alternatives to debt management plans include:
One alternative to a debt management plan is debt settlement. If you can’t qualify for a debt consolidation loan or a debt management plan won’t be sustainable, consider debt settlement. It requires you or a debt settlement company to negotiate with lenders, ideally reducing or eliminating what you owe. Most of the time, debt settlement lets you pay less than you owe to wipe out your debts. However, it can have tax and credit score implications.
Credit counseling requires you to talk to a certified credit counselor. A certified credit counselor asks you questions about your financial situation to figure out how to remedy it. They’ll perform a financial analysis and help you make a budget. In some cases, this is all you need to get back on track.
There is the option of using the Do-It-Yourself (DIY) approach to getting out of debt. You can take several steps to help yourself, such as cutting up your credit cards, choosing a strategy (such as the debt snowball method) to pay off your debt, calling creditors to negotiate or even getting a second job.
Debt management companies can help you work toward a future without any debts in your name. However, they do have fees, and there are some scams and red flags you’ll need to watch out for. Alternatives are available, so it’s important to consider all the options before you select a plan for getting out of debt — what works for you may not be the same as what’s best for someone else. Regardless of what you choose to do, your debts won’t go away on their own, so take action. Start your research, and prepare to move forward with a new debt-elimination strategy.
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