Debt Management Plans. If your financial problems stem from too much debt or your inability to repay your debts, a credit counseling agency may recommend that you enroll in a debt management plan (DMP). A DMP alone is not credit counseling, and DMPs are not for everyone.
Debt settlement is a legitimate method of debt repayment that can be quite beneficial for consumers in certain circumstances. It’s also an industry that’s been plagued in the past by companies and individuals willing to take advantage of consumers in need. Much of what made debt settlement feel like a dangerous option in the past has changed.
Most debt settlement companies are for-profit companies, while most debt management companies are nonprofits. If you want to learn more, see my separate post on debt settlement companies. Ultimately, though, debt settlement is best viewed as an option of last resort.
Student Loan Counseling. Student loan debt has surpassed credit card debt and is now ranked #2 in terms of debts that Americans are holding, second only to mortgage debt. Our student loan counselors will review your entire financial profile, including your federal student loans, and work with you to find an affordable solution.
InCharge does not report your participation in a debt management program or plan to the credit bureaus, however your creditors might. Your credit score may decrease when your credit cards are closed and then increase as you make consistent on-time payments over the course of the program.