How Much Does A Debt Management Program Cost?
Debt management program fees provide the money needed to operate the nonprofit credit counseling agencies that provide this service to consumers.
Though the agencies are nonprofit, they must still generate enough income to pay employees, buy equipment and manage the programs that provide solutions to people struggling with debt.
Debt management plans simplify the bill-paying experience by consolidating credit card debt into one payment at a monthly rate you can afford.
The process starts with credit counseling from a team of certified financial counselors like those at InCharge Debt Solutions. The counselors review your income and expenses, help you develop a budget and offer debt-relief options. There is no charge for that service. It is free!
A debt management plan is one of the most effective debt-relief options for credit card debt. It is customized for each individual based on the amount of debt owed. It may reduce the interest rate on your debt and lower the monthly payment.
Debt Management Program Fees
The fees associated with debt management are governed by state laws based on where you reside.
The average monthly fee at InCharge is $33.
If you decide to enroll in a debt management program, most agencies will charge a one-time set-up fee up to $75, though this can vary by state.
The money saved by having your interest rate reduced and late payment or over-the-limit fees waived for participating in the program, will more than cover the cost of the fees.
Why Do You Charge a Fee?
The agencies that offer debt management programs are nonprofit organizations, but still need money to deal with the cost of providing credit counseling, administering the debt management program, and creating materials used online and in community workshops to educate consumers on debt.
InCharge Debt Solutions is a nonprofit credit counseling organization, serving more than 100,000 people each year with free financial counseling. InCharge counselors work with creditors to arrive at a monthly payment that consumers can afford and monitor the consumer’s payments to make sure there is progress in the program. The counselors are certified by the National Foundation of Credit Counseling and must go through training every year to offer financial advice.
Your monthly fee not only pays to defray the cost of counseling and maintenance on your account, but supports our financial education outreach to military, children, college students and low-income single parents.
Choosing the Right Debt Management Agency for You
If you want a successful outcome with a debt management program, it is vital that you establish a good working relationship with a qualified credit counselor, like the ones at InCharge Debt Solutions.
A certified counselor will teach you about the importance of creating a budget that accurately reflects your income and can comfortably meet your expenses. They will give you access to workbooks and online resources that can improve your understanding of personal finance.
Beware of credit counseling scams that ask for upfront money or donations “to get you started,” but provide no services first. Make sure whatever agency you’re considering is accredited by the NFCC. Check review sites to see what customers say about the service and effectiveness of the programs.
Experienced counselors know there can be bumps in the road and will warn you in advance how to avoid them.
If you need more information on debt-relief options, InCharge credit counselors are available to offer advice or problem solve with you.
About The Author
Joey Johnston has more than 30 years of experience as a journalist with the Tampa Tribune and St. Petersburg Times. He has won a dozen national writing awards and his work has appeared in the New York Times, Washington Post, Sports Illustrated and People Magazine. He started writing for InCharge Debt Solutions in 2016.