Reputable Credit Counseling

Reputable debt management companies have nothing to hide. Most nonprofit debt management companies are government subsidized and voluntarily follow strict industry standards set forth by third party organizations. To maintain their licensing and accreditation, these companies must put their agreements in writing. Reputable debt management companies use clear, everyday language and allow potential clients to take as much time as needed to review the agreement and ask questions. If an agency tries to lock you into a verbal agreement, you should seek assistance elsewhere.

Many creditors offer favorable repayment terms to consumers who enroll in a DMP, including interest rates ranging from 6% to 10% on their credit card debt. These creditors may also eliminate late fees and penalties once a consumer enrolls in a DMP with a nonprofit credit counseling organization.

At CredAbility, certified counselors help consumers determine whether they can tackle their financial challenges through budgeting and reduced spending, or if the structure of a debt management plan will be more effective.

What is a Debt Management Plan?
For a small monthly fee, consumers make a single payment to an agency like CredAbility, which acts as a trustee in distributing the funds to creditors. CredAbility works with both clients and creditors to design a debt repayment program that minimizes monthly payments, interest and related fees, providing a manageable tailored plan for the client. This enables the client to repay their entire debt obligation at more favorable terms, and on a plan that is within their ability to pay.

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