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Feeling overwhelmed by your debt? A debt management plan is often a smart solution.
This debt payoff option puts you on a path to pay off your debts — typically from credit cards — over three to five years.
With a debt management plan, several debts are rolled into one monthly payment under a reduced interest rate, making the debts easier to pay off and saving you money in the long run.
How to choose the best debt management program
It’s best to go with a nonprofit organization, rather than a debt settlement company that may offer counseling services. Settlement companies focus more on helping you clear your debts by paying less than you owe, which is a much riskier and expensive process.
Here are some tips for narrowing your search of debt management agencies:
1. Check accreditations: Look for an agency that's a member of the National Foundation for Credit Counseling or the Financial Counseling Association of America. These organizations help set industry standards and require additional accreditation by a third party (and re-accreditation every few years). This ensures you’re working with a reputable agency.
2. Get a rundown of costs: Credit counseling agencies charge small fees for debt management plans, including a one-time enrollment fee and a recurring monthly fee.
Fees are typically capped and vary based on where you live and the amount of debt you have. In some cases, fees may be reduced or waived based on financial hardship. Research any fees before enrolling in a DMP. Most agencies publicize average fees on their website.
3. Say yes to the free consultation: Many credit counseling agencies offer a free phone call or debt analysis, so a counselor can review your income and debts. Take advantage of this phone call, which should require no commitment on your end.
During the call, ask what reductions in interest you can expect, the timeline for becoming debt-free and your projected monthly payment.
Compare top debt management programs
These four organizations offer debt management plans in all 50 states, and are each members of the National Foundation for Credit Counseling.
| Agency | Average fees |
|---|---|
| American Consumer Credit Counseling |
|
| Cambridge Credit Counseling |
|
| GreenPath Financial Wellness |
|
| Money Management International |
|
American Consumer Credit Counseling
American Consumer Credit Counseling is a nonprofit organization founded in 1991. In 2024, ACCC helped more than 4,000 people pay off over $96 million in debt, according to its most recent annual report .
American Consumer Credit Counseling fees: There is a one-time $39 fee for enrolling in ACCC’s debt management program. There’s also a monthly maintenance fee of $7 per enrolled account, with a maximum of $70. The average monthly maintenance fee is $25.
Cambridge Credit Counseling
Cambridge Credit Counseling is a nonprofit organization founded in 1996. Its debt management plan can reduce credit card interest rates from an average of 22% to 8%, with clients typically saving around $140 per month .
Cambridge Credit Counseling fees: There is a one-time average fee of $40 for enrolling in Cambridge’s debt management plan, with a maximum amount of $75. There’s also an average monthly fee of $30, with a maximum amount of $50.
GreenPath Financial Wellness
GreenPath Financial Wellness is a nonprofit organization founded in 1961. On average, clients enrolled in a debt management plan from GreenPath can expect to save almost $200 in monthly minimum payments .
GreenPath Financial Wellness fees: There is a one-time fee of $35, on average, for enrolling in a GreenPath debt management plan. There is also an average monthly fee of $28.
Money Management International
Money Management International is a nonprofit organization founded in 1997. It’s the largest full service nonprofit consumer credit counseling organization in the nation. In 2024, an average MMI client saved over $48,000 in total interest by enrolling in a DMP .
Money Management International fees: There is a one-time set-up fee of $38 for enrolling in Money Management's debt management program, with a $75 max. There’s also an average monthly maintenance fee of $27, with a $59 max.
Is working with a debt management company right for you?
Debt management plans can be a great way to get out of debt, but they’re not a magical fix.
A debt management plan requires financial discipline, since you’ll need to commit to paying down your debt over three to five years. You might consider a debt management plan if you:
- Have mostly unsecured debt: Debt management plans are available for unsecured debt like credit cards and personal loans. Secured debts, such as a car loan, are not eligible, since they’re backed by collateral.
- Struggle to stay on top of current payments: If you’re only able to make the minimum payment on your debts — or are starting to miss payments — a debt management plan can help you avoid late fees and collection calls, while lowering your interest rate.
- Have a steady income: Most credit counseling agencies require a steady income to show you can make payments toward your debts each month. Some may ask for proof of income, such as your most recent pay stub.
- Can’t qualify for other debt payoff options: Other debt consolidation products, like balance-transfer credit cards, can help you pay down debt with no interest, but you need good or excellent credit (any score in the mid-600s or higher) to qualify. A debt management plan has no credit score requirement.
- Won’t need access to credit while on the plan: Credit counseling agencies require you to close your enrolled accounts while on the plan and avoid opening new lines of credit. Some agencies may allow you to leave one credit card open for emergencies.
How to pay off debt without working with a debt management company
If a debt management plan isn’t the right choice for you, there are other options available.
Do-it-yourself debt payoff
If you’re not feeling overwhelmed by debt, but just need a plan to get out of it, consider the debt avalanche or debt snowball method. These tried-and-true options may help you get out of debt without outside assistance.
With the debt avalanche method, you pay down your debt with the highest interest rate, then the debt with the second-highest rate, and so-on. This saves money on interest, since you’re tackling your most expensive debts first.
With the debt snowball method, you pay your smallest debt first, then your second-smallest and so-on, building momentum with quick wins.
Debt consolidation loans
A debt consolidation loan from an online lender or credit union can consolidate your debts into one payment, similar to a debt management plan. Once you receive the loan funds, you use the money to pay off all your debts at once. You then repay the loan at a fixed interest rate over a set term, usually up to seven years.
These loans are available to borrowers across the credit spectrum, but you’ll want a rate that’s lower than your current debts. APRs on debt consolidation loans range from 7% to 36%.
Debt relief
Debt relief options like debt settlement and bankruptcy can help if you’re feeling completely overwhelmed by your debt and see no way out (usually this means your debt accounts for about 40% or more of your income).
However, settlement and bankruptcy should be considered last resorts, since they can majorly damage your credit.
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- 1. American Consumer Credit Counseling. 2024 Annual Report. Accessed Dec 16, 2025.
- 2. Cambridge Credit Counseling. Debt Management Plans. Accessed Dec 16, 2025.
- 3. GreenPath Financial Wellness. Debt Management Program. Accessed Dec 16, 2025.
- 4. Money Management International. How Much Can You Save with a Debt Management Plan?. Accessed Dec 16, 2025.
