Credit Counseling Services: Free Help Managing Debt
Drowning in debt can feel hopeless, but you do not have to figure it out alone. Nonprofit credit counseling agencies offer free or low-cost help to get your finances back on track.
What Credit Counselors Do
- Review your complete financial situation
- Help create a realistic budget
- Negotiate with creditors on your behalf
- Set up debt management plans
- Provide financial education
Finding Legitimate Help
Look for agencies accredited by the National Foundation for Credit Counseling (NFCC.org) or Financial Counseling Association of America (FCAA.org). Be wary of companies that charge high upfront fees or make unrealistic promises.
Debt Management Plans
A debt management plan consolidates your unsecured debts into one monthly payment to the counseling agency, which pays your creditors. Many creditors reduce interest rates and waive fees for accounts in these plans.
