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If you’re struggling to pay off debt, a debt management plan — which consolidates your debts under one repayment plan — might be a helpful option. The best debt management companies of 2024 offer these repayment plans with reasonable fees and also provide a free consultation to see if this type of plan is right for your situation.

Best companies offering debt management plans

Compare the best debt management companies

 TYPE OF COMPANYSTATE AVAILABILITYFEESOFFERS A FREE CONSULTATION?
Accredited Debt Relief
For-profit
30 states and Washington, D.C.
15% to 25% of enrolled debt amount (success-based)
Yes
Money Management International
Nonprofit
All 50 states and Washington, D.C.
Set-up fee (average $33) and monthly fees (average $25)
Yes
GreenPath
Nonprofit
All 50 states and Washington, D.C.
Set-up fee ($0 to $50, depending on your state and amount of debt) and monthly fees ($0 to $75, depending on your state and amount of debt)
Yes
CreditAssociates
For-profit
Not available in Colorado, Connecticut, Minnesota, Maryland, Vermont and Wyoming, among others
22% to 25% of enrolled debt amount
Yes
InCharge Debt Solutions
Nonprofit
16 states
Set-up fee ($75, depending on your state) and monthly fees (average $33, depending on your state and amount of debt)
Yes
American Consumer Credit Counseling
Nonprofit
All 50 states and Washington, D.C.
Set-up fee ($39) and monthly fees ($7 to $70)
Yes
Credit.org
Nonprofit
All 50 states and Washington, D.C.
Enrollment fee and monthly fees (exact amount depends on state)
Yes
Debt Management Credit Counseling Corp.
Nonprofit
Most states (full list not disclosed)
Set-up fee ($50 to $100)
Yes

Methodology

Our expert writers and editors have reviewed and researched multiple debt relief companies to help you find the best debt management plans. Out of all the debt management companies considered, the eight that made our list excelled in areas across the following categories (with weightings): services offered (25%), state availability (5%), fees (20%), customer satisfaction (20%), online customer experience (20%) and business history (10%).

Within each major category, we considered several characteristics, including money-back and cancellation policies, educational resources, time in business and whether the company is certified by the American Fair Credit Council. We also evaluated each company’s customer support options and customer reviews.

Why some companies didn’t make the cut

Of the debt relief companies that we reviewed, only a fraction made the cut. The reasons for this varied by company, with some scoring lower due to limited state availability while others had poor customer reviews.

How does debt management work?

Debt management generally refers to setting up a debt management plan. This means you’ll work with a credit counseling agency, which will review your financial situation (income, expenses, etc.) to help develop a personalized budget. This will involve consolidating your debt obligations into one manageable payment. The counselor will then work with your creditors to bring them on board with the plan and potentially negotiate lower interest rates, reduced or waived fees and other benefits.

Once your creditors have agreed to the debt management plan, you’ll make fixed monthly payments to the debt relief company, which will disburse funds to each of your creditors on your behalf. As you continue paying down your debt, the credit counselor may also renegotiate with creditors to obtain better terms or interest rates on your accounts.

It typically takes three to five years to successfully complete a debt management plan. 

Qualifying for a debt management plan

Qualifying for a debt management plan involves meeting with a credit counselor to determine if this type of debt relief best suits your needs. This includes showing that you earn enough income to afford both your expenses as well as the monthly payments you’d make on the plan. 

This means you might not be eligible for a debt management plan if you have:

  • An income that’s too high: If you earn a high income, creditors might believe that you have the funds to pay off your debt on your own without needing the lower rates, reduced fees and other benefits of a debt management plan. 
  • An income that’s too low: If your expenses and debt payments amount to more than you earn each month, a debt management plan won’t fix the problem. In this case, your credit counselor might work with you to greatly reduce your monthly expenses or provide other debt relief options.

Keep in mind that only unsecured debts — such as credit cards and personal loans — are eligible for a debt management plan. If you’re struggling with secured debt like a mortgage or auto loan, you’ll have to consider other types of debt relief. In this case, working with a credit counselor at an accredited nonprofit to determine the best course of action could be worth pursuing. 

Debt management vs. debt relief: What’s the difference?

Debt relief refers to all products designed to help individuals manage or eliminate their debts. These include debt management plans, which involve working with a credit counseling agency to create a repayment plan that fits your budget. You might also be able to lower your interest charges and monthly payments through this type of repayment plan.  

Other debt relief options include credit counseling, debt settlement, debt consolidation and bankruptcy. Debt relief companies also often provide educational resources and programs to help consumers take control of their finances. 

How to find the best debt management company

As you consider your options, here are some important factors to consider while comparing debt management companies:

  • Fees: Consider what fees each company charges — in most cases, these will include an initial set-up fee and monthly maintenance fees. Reasonable monthly fees should generally be no higher than $70. There are also some companies that charge success-based fees based on the total amount of debt you enroll in the plan. Depending on how much you enroll, it could be much more expensive to pay success-based fees compared to monthly fees. 
  • Reputation of the company: Make sure to research each company’s reputation to verify that it’s a trustworthy organization that will handle your finances with care. Some ways to do this include reviewing each company’s website for errors or discrepancies, checking if its contact information is legitimate and looking into online reviews from past customers to see if others have been happy with the company’s services.
  • Amount of time it will take to complete the repayment plan: A successful debt management plan should be completed within five years, depending on your financial situation. However, some companies advertise repayment in as little as one year.
  • Availability of customer service team: For your debt management plan to be successful, you’ll likely need assistance along the way. Make sure customer support is easy to reach via email, phone or live chat. Some companies also offer 24/7 online account management. 
  • Educational resources: Many debt management companies offer educational resources to help you better handle your finances. Consider what resources would be most beneficial for you.

Watch out for debt relief scams

Unfortunately, plenty of scammers promise debt management help, too. In many cases, scammers promise to reduce your payments, consolidate your debts or even eliminate them entirely.

Here are some warning signs to watch out for as you research debt relief companies:

  • Using high-pressure sales tactics — such as threatening that your debt will be sold to a collection agency if you fail to act immediately.
  • Promising to reduce your interest rates or payments for a fee.
  • Marketing the company as being affiliated with a government program or agency. 
  • Claiming that the company can eliminate your debt in a short period of time. 

Should you use a debt management company?

While using a debt management company is a good option in some cases, it isn’t the best choice for everyone. Here are some pros and cons of debt management plans to help you decide if working with a company to set one up is the right option for you:

Pros

  • Lower your overall payoff costs: The debt management company you work with will negotiate with your creditors. This can result in lower rates, reduced or waived fees and other benefits, which could save you money in the long run.
  • Pay off debt faster: Debt management plans are typically designed to be completed within five years or less. This means you might be able to pay off your debt faster than you would have on your own.
  • Improve your credit: Making on-time payments on a debt management plan could help to improve your credit over time.

Cons

  • Loss of credit: Signing up for a debt management plan usually requires closing most or all of your credit accounts. Additionally, you generally won’t be able to open any credit accounts until you’ve successfully completed the plan.
  • Temporary drop in credit score: When you close your credit accounts, you could see a drop in your credit score. However, making on-time payments on the plan can help to improve your score over time.
  • Your creditors might not participate: Not all creditors are willing to participate in debt management plans.

Frequently asked questions (FAQs)

The cost of working with a debt management company will vary depending on the individual company. You can typically expect to pay both an initial set-up fee and monthly maintenance fees. Average set-up fees often range from $25 to $75 while monthly fees average around $75, depending on the company. In some cases, these fees can be waived depending if you’re experiencing financial hardship and according to your state’s regulations.

Some debt management companies charge success-based fees instead. These are generally a percentage of the amount of debt you enroll — usually 15% to 25%, depending on the company. This means you’ll only pay if you receive a solution to your debt from the company, which can be helpful if your creditors don’t agree to a debt management plan. But if the plan is successful, you could end up paying much more than what you’d be charged for typical set-up and monthly fees, depending on how much debt you enroll.

The best debt management company for you will depend on your individual situation. Be sure to compare your options from a few companies to decide which is right for your needs. Consider not only fees but also the company’s reputation, licensing and accreditation as well as state availability, educational resources and customer service options.

Whether or not paying for a debt management service is worth it will depend on your financial circumstances and goals. While there are fees associated with working with a debt management company, these can be well worth it if the company can successfully help you tackle your debt. 

Also keep in mind that while a debt management plan can help you become debt free, it won’t fix any bad financial habits that might have landed you in debt in the first place. Make sure to address problems like overspending to avoid needing further debt management in the future.

Only unsecured debt is eligible for a debt management plan. This means you won’t be able to pay off secured debts — such as a mortgage or an auto loan — with this type of plan. However, a credit counselor from a debt relief company could still help you find a solution to tackling secured debt.

You might also consider simply buckling down and repaying the debt on your own. In this case, it’s important to come up with a plan that will align with your needs — for example, you could use the debt avalanche or debt snowball method as a payoff strategy.

“Educate yourself, create a budget and prioritize your debt repayments,” says financial advisor Kalee Boisvert. “Seek out resources, online tools and communities that can support and empower you on this journey.”

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Kiah Treece

BLUEPRINT

Kiah Treece is a small business owner and former attorney with extensive experience in business and consumer finance. She focuses on demystifying debt so individuals and business owners can take control of their finances. Her work has been published on Forbes Advisor, Investopedia, The Spruce, Rolling Stone, Treehugger and more.

Ashley Harrison is a USA TODAY Blueprint loans and mortgages deputy editor who has worked in the online finance space since 2017. She’s passionate about creating helpful content that makes complicated financial topics easy to understand. She has previously worked at Forbes Advisor, Credible, LendingTree and Student Loan Hero. Her work has appeared on Fox Business and Yahoo. Ashley is also an artist and massive horror fan who had her short story “The Box” produced by the award-winning NoSleep Podcast. In her free time, she likes to draw, play video games, and hang out with her black cats, Salem and Binx.