Debt consolidation is a third-party payment system. Agencies range in quality so make sure you shop around. Most debt consolidation plans are structured the same way. They ensure member agencies pass rigorous standards set forth by the Council on Accreditation or another approved third party, and that their counselors pass a comprehensive certification program. Financial institutions don't give preferential treatment to any one organization, nonprofit or otherwise.
However, if you just happen to have accounts with creditors that don't offer any concessions, that benefit is reduced. Look for a nonprofit credit counseling organization that belongs to either the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA).
We cannot and do not guarantee their applicability or accuracy in regard to your individual circumstances.
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With a debt management plan, you make one payment to the credit counseling agency, which distributes the money to your creditors until they are paid in full.
First, you must know just how much credit card debt you actually have.
By understanding how consolidating your debt benefits you, you'll be in a better position to decide if it is the right option for you.