How should I go about choosing a debt management program?

Choosing a debt management program

For some consumers, working with a debt management program may be the best way to resolve financial problems. A debt management plan is something a credit counselor may recommend for certain consumers – a way for consumers to pay off debt on a specific payment schedule over a minimum of two years.

Debt management plans are offered through credit counseling agencies, so it is important to choose a reputable one. Research the credit counseling agency, understand how the fee structure and payments work – if every dollar deposited is used for debt repayment, for example – and make sure that you feel confident with the people and the agency.

Ask to speak to current or previous customers to find out about their experience. Neither credit counseling agencies nor debt management plans are regulated by the government, so it is important for consumers to do some basic research.

To find a credit counseling agency who may recommend a debt management plan, consumers should check with local universities, credit unions, housing authorities, and military bases, which often offer nonprofit credit counseling programs. Another place to check is with banks and consumer protection agencies for recommendations of reputable services in a particular area.