Looking for a trustworthy way to take control of your debt? Our partners at the National Foundation for Credit Counseling can help you get the debt management guidance you deserve.
Getting out of debt requires a plan. Here, you’ll learn what a Debt Management Plan is, how NFCC-Certified Credit Counselors can support you, and what steps you can take today to create a path toward financial stability.
Savvy Ladies is pleased to partner with the National Foundation for Credit Counseling (NFCC), a trusted non-profit organization offering debt management counseling and program services with their NFCC Member Agencies.
“Taking control of your debt today by working with a respected partner isn’t just about relief—it’s about reclaiming your future. Let the right debt-management company help you turn today’s burden into tomorrow’s freedom.”
-Savvy Ladies Helpline Volunteer, Chris Blakely, CFP
While debt can be overwhelming, working with a NFCC-Certified Member Agency Credit Counselor can give you the guidance and support you need to take control of your debt and create an actionable plan for a better financial future.
What is an NFCC Member Agency?
NFCC is a non-profit membership organization. Membership in the NFCC is predicated upon quality organizations providing quality services. Independent quality standards and control measures ensure members adhere to the values and best practices of the NFCC. Currently, the NFCC recognizes the following accreditation standards: Council on Accreditation (COA) Credit Counseling Standard; Independent Standards Organization (ISO) 9001; Credit Counseling membership.
Member Agencies offer solutions to pay down debt and achieve financial security, without loans or hidden fees. NFCC-Certified Credit Counselors can help you with your unsecured debt (like credit card debt). The agencies outline a Debt Management Plan (DMP), where you as the client make a single monthly payment to the agency, which then distributes funds to creditors, often after negotiating reduced interest rates and fees.
NFCC Member Agencies are formally accredited to ensure service quality and must provide timely, accessible, and nondiscriminatory counseling, including transparent DMP terms.
What is a Debt Management Plan (DMP)?
A Debt Management Plan (DMP) is not a loan, but a structured program offered by NFCC Member Agencies to help you pay down debt and regain financial stability. With the guidance of a NFCC-certified, credit counselor, you’ll receive personalized support to review your situation, create a manageable budget, and determine if a DMP is the best option for you.
A Debt Management Plan is defined as an agreement between you, the client and a member agency to assist you in repaying all unsecured outstanding debt. DMP agreement forms must include the client’s expectations and responsibilities, an enumeration of the debts, a proposed payment for each creditor, the total debt owed, and a statement of the client’s right to cancel the agreement.
A DMP with a NFCC Accredited Agency includes the following key requirements:
- Usually allows repayment within 60 months; longer (up to 72 months) only with documented hardship.
- Includes all debts and avoids negative amortization.
- Treat creditors fairly with no preferential treatment.
- Ensures clients close credit lines and avoid new credit.
- Maintains client confidentiality and disclose only necessary data to participating creditors.
- Provides quarterly reports and annual reviews to clients.
- Do not pay staff commissions or receive/pay referral fees for DMP accounts.
Debt Management Plans vs. Other Debt Relief Options
There are four main ways to pay off debt:
- Debt settlement
- Debt consolidation
- Bankruptcy
- Debt Management Plans
It’s important to understand their differences, as well as their benefits and risks, before you decide what option is right for you.
Debt Management Plans are carried out by nonprofit counseling agencies that structure a repayment plan, helping you lower your interest rate and monthly payments without harming your credit score. This approach is only available for unsecured debt (mainly credit cards).
Debt settlement, on the other hand, is a risky option that involves paying a for-profit company to negotiate on your behalf. These companies charge high fees for their services, which are usually a percentage of the debt, and are not obligated to successfully settle your debt. While you wait for negotiations, interest and late fees continue to accrue and your credit score is negatively affected, potentially leaving you in a worse position if negotiations fall through.
Debt consolidation is another option, allowing you to combine multiple debts into a single loan or credit line. While it can simplify payments and may reduce interest rates, it typically requires good credit to qualify and does not address underlying spending or budgeting challenges.
Bankruptcy is a legal process that can discharge or reorganize debt when repayment is no longer realistic. It can provide a fresh start, but it also has long-term credit consequences and may involve loss of assets, making it a last-resort option for many.
When it comes to unsecured debt, the more favorable option is a Debt Management Plan.
Learn more about the different debt relief options available below and in this article.
| Debt Relief Option | Pros | Cons |
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Debt Settlement A for-profit company hired by you negotiates with creditors and debt collectors on your behalf to pay less than the total owed. It’s the riskiest option. |
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| Debt Consolidation Rolling multiple debts into one by taking a new loan or credit card (balance transfer) |
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Bankruptcy Legal process in which some or all debt is discharged (forgiven) or restructured via court. Two types: Chapter 7 (faster, but need to qualify) and Chapter 13 (must complete a three-to-five year repayment plan) |
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| Debt Management Plan Repayment program managed by a nonprofit credit-counseling agency. You pay one monthly amount and they distribute it to creditors. |
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Why Choose the NFCC
- A trusted resource. Helping Americans since 1951, the NFCC has served over 35 million individuals since 2006, and has 1,500+ NFCC certified credit counselors nationwide.
- A reputable choice for its high ethical standards. As a non-profit organization, the NFCC and its member agencies are structured to serve the consumer’s best interest.
- Effective debt management programs. Regardless of the amount and type of debt, NFCC-certified credit counselors offer proven solutions to pay down debt and achieve financial security.
- Personalized guidance. NFCC-certified credit counselors can help you reach financial independence by sharing personalized guidance, judgement-free advice and a clear action plan.
How it Works
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- Connect with a NFCC-certified nonprofit credit counseling agency. Answer a few intake questions to help match you with the right services.
- Participate in a one-on-one confidential review of your financial goals and budget.
- Create a personalized financial action plan tailored to your situation.
Do NFCC Member Agencies charge fees for counseling services?
Yes. While NFCC-member agencies offer an initial free credit counseling and educational resources, there are low-cost administration fees that the member agencies charge for specific services – these fees vary depending on the agency and state laws. You may be able to qualify for a fee waiver for bankruptcy counseling or for your Debt Management Plan (DMP) based on your income or military service, so make sure to inquire and ask!
How do I get matched with a NFCC Member Agency?
When you submit your details via their website, the NFCC will connect you with a Member Agency based on your location and the type of counseling you need. The Agency you’re matched with then will contact you, typically within 48 hours, to begin the process and discuss your options.
Savvy Ladies Helpline is always available to answer any additional questions
Savvy Ladies Free Financial Helpline can be used alongside the NFCC to help guide you and answer any questions that come up along the way. You can always submit a question to the Helpline here.
