To cover their costs, non-profit credit counseling organizations usually charge small fees for their debt management programs. When you work with a professional credit counsellor from a non-profit agency, they help you create a budget, explain what the fees for a DMP are and help you know if you can afford it or not. If you can’t afford it, they’ll give you information about other options and debt relief solutions, including possible alternatives to bankruptcy.
For-profit companies typically have higher cost DMPs and charge larger fees for their services. When you’re trying to decide which organization to trust with your debt and your money, check each one out carefully before you sign onto a repayment program. You can even use a debt management program calculator to get an idea of what your monthly costs will be like and to see when you could potentially complete your DMP.