Is Credit Counseling the same as a Debt Management Program?
Almost all debt management programs are administered by consumer credit counseling agencies. The terms “credit counseling and “debt management” are often used interchangeably even though they’re not the same. You can and should get real credit counseling before you commit to a debt management program, and a credit counselor can and should help you make a budget and explore other options (such as self-help methods or consolidation loans) with you before you consider a debt management program. Thoroughly researching the agency is the most important thing to do before deciding to enroll in their (or any) debt management program. A Debt management program (DMPs) is an arrangement in which a credit counseling or debt management agency negotiates with your creditors to reduce or freeze your interest rates, waive late fees, and make your monthly payments more manageable. You pay one monthly payment to the agency, which then disburses payments to your creditors, often taking a small administra
Related Questions
- What is Debt Settlement and how does it differ from Debt Management (also referred as Credit Counseling or a Debt Consolidation Program)?
- Whats the difference between Credit Counseling (Debt Management Program) and Debt Settlement (Debt Negotiation)?
- What’s the difference between Credit Counseling (Debt Management Program) and Debt Settlement (Debt Negotiation)?
