Credit counseling organizations work with you to simplify your payment situation and reduce your rates. They have relationships with major creditors and have existing arrangements for those in your situation. There are hundreds of credit counseling companies, and some are more reputable than others. The National Advocacy Group can place you with a trusted organization who can support you as you take steps to get out of credit card debt.
The credit counseling company will review your budget and provide you with your options for a debt management plan (DMP). You’ll make a single monthly payment directly to the agency, and the agency will handle paying your creditors. The company charges its own fee, but that includes educational services to you as you plan your financial future. Just like any other expense, you will need to consider your DMP payment as part of your budget – be realistic about what you can handle each month. If you experience an emergency or any other financial setback, you should reach out to the agency immediately to ensure you do not fall behind on your payments to them.