Debt Management

How Debt Management Can Help You Save Money While Getting Out of Debt

Faster Debt Repayment: Reduce the time required to pay off your credit card debt.
Lower Interest Rates: Save money by reducing the amount of interest paid.
Ongoing Financial Education: Learn effective spending habits and budgeting techniques.
Debt Management Skills: Gain tools to manage debt and build savings for the future.

Struggling with debt? Get free expert Help today.

How Debt Management Works

Debt management is designed to simplify the repayment process and remove common burdens to overcoming debt. Most creditors provide better repayment terms for people on debt management plans.

You may experience perks like

Overall lower monthly payment

Reduced interest rates

Waived late and over-limit fees

An end to collection calls

3-5 year debt repayment average

Customization payment date

How Credit Counseling Works

Overcome Your Financial Challenges

During your credit counseling session, we review the current state of your finances to determine your best path forward. There are multiple options, so what works for your friend, neighbor or co-worker may not be the best solution for you. We remove the complexity and provide you with straightforward solutions. The process is smoother and faster if you have financial documents on hand, but you can get started without them..

Gather Your Information

Compile details of your income and expenses to get started

Start Your Session

Start the process online or call us at 866-528-0588 from 6 a.m. - 6 p.m. MST. Online sessions are available 24/7, and you can save your progress and return later.

Get a Financial Review

We will analyze your financial situation to determine your best course of action.

Receive Your Personalized Plan

You will receive a free credit report summary, customized budget, educational resources and an action plan explaining the debt relief solution that makes the most sense for your situation.

Frequently Asked Questions About Debt Management

No, your credit score is not a factor in determining whether a debt management plan is right for you.

A debt management plan is not reported to credit bureaus and does not factor into a credit score. However, your score may initially dip when you close your credit cards. Although people in the program typically see their score increase when they make regular payments on time, the plan is not intended to preserve or improve your credit score, credit history or credit record. If your accounts are past due before you enroll in a debt management plan or become past due after you enroll, your credit history may be negatively affected, and/or your creditors may charge off the accounts. Other debt relief options, such as debt settlement and bankruptcy, negatively impact your credit score.

No, your credit score is not a factor in determining whether a debt management plan is right for you.

Completing credit counseling online or over the phone will help us determine if a debt management plan is the right solution for your circumstances. If we are able to work out a balanced budget that accommodates the plan and other monthly expenses, there’s an excellent chance a debt management plan will be your best debt relief option.

Credit counseling sessions are always free. If you enroll in a debt management plan, your counselor will inform you of the applicable setup and monthly fee, which is determined by your state of residence. The fees will be included in your monthly debt management payment.

You can enroll credit card debt and medical bills into a debt management plan. A debt management plan does not include secured debt, such as mortgages and auto loans, which are backed by collateral. Additionally, it does not include student loans, payday loans or IRS payments. If you are struggling to meet your mortgage payments, we offer foreclosure prevention and default counseling.

The credit cards you place on the debt management plan are generally closed by the creditor. However, we encourage you to close your accounts before starting the program. The goal is to provide you with better repayment terms to help you pay off the debt you currently owe—not to add more debt. Our counselors will work with you to build a manageable budget to avoid incurring additional debt while on the program.

Every situation is unique. The length of the plan will depend on a number of factors, including total debt amount, income, accuracy of creditor balances, finance charges and any debt added to the program in the future. Most clients on debt management plans are able to pay off their enrolled debt in three to five years. You may also make extra payments at any time to help accelerate your payoff time and save on interest charges.

We recommend that clients enrolled in a debt management plan do not open new lines of credit until the current debt is paid off. Creditors may discontinue your plan benefits if you open new credit. Vehicle and housing loans are unique and may be necessary while you are enrolled in a debt management plan. We will provide lenders with your TCA payment history to assist with such loans upon your request.

We recommend you keep your accounts current. The creditors can’t change what they have already billed you for, so we recommend paying the minimum amount due until they have made changes to your monthly billing cycle reflecting the new proposal terms. If you are unable to do so, we recommend you at least cover any difference that is owed to avoid falling past due or incurring any fees.

Explain to your creditors that you plan to take part in the program. Once enrolled, you can refer all creditor inquiries to Take Charge America.

As a nonprofit organization, Take Charge America works for you. We do not receive incentives from creditors or lenders to steer you in a specific direction. We also do not provide incentives to counselors based on the solution they recommend. We objectively review your finances and recommend the best solution to eliminate debt based on your individual circumstances. Further, we are committed to providing you and the general public with free financial advice and resources to achieve financial independence. Since 1987, we have helped more than 2 million people manage and repay more than $6 billion in debt.