
- Debt minimum
- No minimum
- Program length
- Up to 60 months
- Monthly fee
- $25 on average
To make our top picks, we considered 17 companies offering debt management plans and narrowed them down based on factors including fees, types of debts serviced, additional services and number of states available. For more information, read our full methodology.
Our picks may be Authorized Partners who compensate us. This does not affect our recommendations or evaluations but may affect the order in which the companies appear.
Company | Customer rating | Our pick for | Debt minimum | Program length | Enrollment fee | |
---|---|---|---|---|---|---|
![]() | No ratingView profile | Low fees | No minimum | Up to 60 months | $33 (average) | Learn more |
![]() | 4.7
951 reviews
951 reviews
| Customer service | Not defined | 36 to 60 months | $0 to $50 | Learn more |
![]() | No ratingView profile | Low debt minimum | Not defined | 36 to 60 months | $0 to $45 | Learn more |
![]() | No ratingView profile | Military and veteran services | $1,000 | 36 to 60 months | $0 to $75 | Learn more |
![]() | No ratingView profile | Extra services | $5,000 | Up to 60 months | Small one-time fee | Learn more |
![]() | 1.0
View profile
View profile
| Types of debts serviced | $1,500 | 36 to 60 months | $37 (average) | Learn more |
Jump into our guides and start learning
If you’re struggling to make payments on your unsecured debt and your interest rates are sky-high, a debt management plan (DMP) may help. With a DMP, a credit counselor will set a fixed payment plan that will allow you to fully repay your debts in three to five years. Plus, they may negotiate lower interest rates or fees with your creditors.
If you are considering a DMP, make sure the agency is a member of at least one reputable trade organization and doesn’t have any recent legal actions against it. You’ll also want to check for required debt minimums and monthly enrollment fees to ensure it’s suitable to your particular situation.
A debt management plan (DMP) is a type of debt relief offered by credit counseling agencies. You’ll repay your entire debt balance at a potentially reduced interest rate or payment amount. You can enroll most types of unsecured debt in a DMP (excluding federal student loans), and it usually takes three to five years to complete.
Since you’ll make timely payments to repay everything you owe with a DMP, your credit score will typically improve over time. In contrast, debt settlement plans will often lower your credit score as you may be asked to make late payments (or stop making payments) and forgiven debt is reflected negatively on your credit report, potentially for many years.
» MORE: What affects your credit score?
A DMP may be a good fit for individuals who have a steady income but are overwhelmed by high-interest unsecured debt, such as credit card balances or medical bills. If you’re struggling to keep up with minimum payments or feel like your balances aren’t decreasing despite regular payments, a DMP can help you regain control of your finances.
This option is best for people who:
It’s also a good choice for those who are seeking structure, accountability and access to financial counseling along the way. However, if you have irregular income or cannot commit to the monthly payments, another debt relief option may be more appropriate.
DMPs are designed to help you repay all your enrolled debts over a relatively short period of no more than five years. You’ll work with a credit counselor and you can enroll most unsecured debts, like credit cards, personal loans, private student loans and medical bills.
If you sign up for a DMP, this is how it typically works:
Once you’ve signed up for a DMP, you can often get ongoing support and advice from your credit counselor so you can manage your finances more effectively in the future.
“The credit counselor will continue to work with you over time to monitor your progress and make adjustments to your plan as needed,” said Levon L. Galstyan, a certified public accountant at Oak View Law Group.
When choosing a DMP, the first step is to find a credible credit counseling agency. Read reviews, search for any recent legal actions against it and note the certifications held by it or its agents, such as designation as a certified credit counselor.
Also, consider how much you’ll pay in fees, when you pay the fees and the types of services you can receive. You should never be asked to pay for an initial consultation with a credit counselor; this first consultation should be free.
Once you agree to sign up for a DMP, you’ll pay a small enrollment fee of up to $75 and an ongoing monthly fee (also up to $75). State law often dictates the maximum fees these agencies can charge, which your credit counselor should disclose to you.
If the company is unwilling to provide you with disclosures or pressures you to sign up, these could be signs the company isn’t legitimate. You should be given time to consider your options, and the company should be readily able and willing to answer your questions.
If the credit counseling agency is operating a scam or engaging in fraudulent practices, you can file a complaint with either the Federal Trade Commission (FTC) or the Consumer Financial Protection Bureau (CFPB).
If you’re not sure a DMP is right for you, there are alternatives.
Note that you shouldn’t use your 401(k) or other retirement accounts as an alternative. Not only might you have to pay a tax penalty to access these funds, but you may set yourself back from your retirement plans.
Also, you might turn to a debt settlement plan in a worst-case scenario. However, this type of plan is risky because the goal is to settle your debt for less than you owe. While in some cases, debt settlement may be a good alternative to bankruptcy, it’s important to carefully evaluate other alternatives before considering debt settlement.
You’ll need to show you have a stable job history and enough income to support the payments. While you’ll get the best interest rates and repayment terms if you have good or excellent credit, some lenders are willing to offer financing to individuals with bad or fair credit.
If this is your situation, you’ll need to demonstrate that your credit issues aren’t ongoing, will be improved with the debt consolidation loan and aren’t likely to be repeated. For example, if your credit score is low because of a one-time medical collection you’re clearing up with the loan, your lender may be willing to overlook this issue.
However, keep in mind you might forfeit these savings if you don’t make your payments on time or don’t repay the amount you transfer before the introductory rate expires. Depending on how the balance transfer is structured, you may owe the extra interest you saved for the entire introductory period on any amount you didn’t repay.
For example, if you received a rate of 0% during a 12-month balance transfer period and the normal rate is 20%, you might owe 20% on the remaining unpaid balance when the 12 months end.
» MORE: How to manage your money
A home equity loan is only viable if you have enough equity in your home to pay off your debt and keep an equity cushion acceptable to your lender (e.g., 10% to 20%). It’s also riskier than the other alternatives since your home is at risk of foreclosure if you don’t repay the loan as agreed.
Plus, if you take a long time to repay the funds, you may end up paying more interest than you would if you paid off the higher-rate debt over a shorter period. Carefully evaluate how much you think you’ll save and if you can easily afford the payments before putting your home’s equity on the line.
A DMP can be a good idea if:
Before you sign up, ensure the services are worth the cost or that the potential interest savings will outweigh the fees.
Over time, a DMP should improve your credit score. There may be a negative impact temporarily as you close some of your older accounts, which reduces your credit history length. However, your credit score should improve over the long run if you make consistent on-time payments and reduce your debt balances.
Search for reviews online and see if the government has taken recent legal action against the company. You can also ask the company if it’s a nonprofit entity and if it or its agents are certified by reputable companies like the NACCC.
It usually takes no longer than three to five years to complete a DMP. The length will depend on your debt level and the monthly payment you can afford. The more debt you owe or the smaller the monthly payment, the longer the plan will take.
The cost of a DMP will depend on your financial situation and the state in which you live. State law varies but often limits the amount that agencies can charge, typically up to $75 a month. Fees are often waived entirely if you have a financial hardship.
To make our top picks for best debt management plans, we collected 24 individual data points from 17 well-known companies. We then compared them on features including:
Since customer feedback is a critical indicator when evaluating companies, this was an important consideration when selecting our top picks. However, for those companies on our list with no ratings on ConsumerAffairs, there were other variables that made them stand out as good options for debt relief, and we factored those into our decisions.
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Company | Customer rating | About | Learn More |
---|---|---|---|
![]() | 4.8
1,896 reviews
| Nonprofit credit counselor serving all 50 states. Housing counseling and debt management plans. Average $40 monthly fees. Minimum $1,000 in eligible debt. Provides a financial literacy program for employers. | Read reviews |
![]() | 4.9
2,665 reviews
| Nonprofit offering credit counseling in all 50 states. Housing and bankruptcy counseling and debt management plans. No debt minimum. Enrollment fees average $40. Monthly fees average $30, capped at $50. | Read reviews |
![]() | 4.7
951 reviews
| Nonprofit organization. Employes NFCC-certified counselors. Free debt, student loan and mortgage delinquency counseling. Debt consolidation program averages a $35 enrollment fee + $28 monthly fee. Available in all 50 states. | Read reviews |
![]() | 1.0
View profile
| Based in North Carolina with online and phone services offered nationwide. Nonprofit debt management organization. Free credit counseling. Low-fee debt management plans. Housing and bankruptcy counseling. | Read reviews |
No reviews | Nonprofit credit counselor. Holds licenses for 10 states. Debt management plans have a $5,000 minimum debt requirement. Fees not disclosed. Offers a payday loan assistance program. NACCC-certified counselors. | ||
![]() | No reviews | Nonprofit credit counselor available in 16 states. Specific programs for military members and veterans. Bankruptcy and housing counseling and debt management plans. Minimum $1,000 in eligible debt. Fees vary by state. | |
![]() | No reviews | Nonprofit counseling services and debt management program. Available nationwide. Services offered in English and Spanish. EOUST-approved bankruptcy counseling. House counseling for first-time homebuyers and renters. | |
![]() | No reviews | Specializes in providing debt settlement services. Free, no-obligation quote. Available nationwide. In business since 2003. | |
![]() | No reviews | Nonprofit credit counselor. Virtual services available in 50 states; in-person in 25 states. Housing and bankruptcy counseling and debt management plans. Average $33 enrollment fee; average $25 monthly. No debt minimum. | |
![]() | No reviews | Offers personalized debt settlement services. Provides expert financial counseling for debt relief. Creates affordable repayment plans. Helps reduce high-interest debt for quicker financial recovery. | |
![]() | No reviews | Nonprofit credit counselor. Offers DMPs in all 50 states. In-person availability is limited. AI-enabled customer support. Enrollment and monthly fees maximum of $45 each. $100 to $250 minimum debt requirement. |