Our Expert Recommendation for the Best Credit Counseling Services

There are hundreds of nonprofit credit counseling agencies nationwide. While there are several excellent companies to choose from, Apprisen is our pick for the best credit counseling agency due to its low fees, robust services, and wide availability. For those looking for a more digital experience, ACCC offers a powerful mobile app to manage your money and track your progress as you work toward your financial goals. And Money Management International has webinars, podcasts, and downloadable worksheets you can use to improve your financial skills.

Compare the Best Credit Counseling Services

	DMP Enrollment Fee	DMP Monthly Fee	Minimum Debt Required
Best Overall	$0–$45	$0–$45	$0
Great for Bankruptcy and Housing Counseling	$40	$30	$0
Highly Accredited	$75 (average)	$33 (average)	$1,000
Well-Established	$0–$75	$0–$59	$0
Great for Online Resources	$39	$7–$70	$200

Why You Should Trust Us

Investopedia collected 2,120 key data points from 40 companies across two months to identify the most important factors for readers looking for a debt relief company, and that information was used to inform our picks for the best credit counseling services. We used these data to review each company for services offered, fees, enrollment requirements, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999 and has been helping readers find the best auto loans since 2021.

Guide to Choosing the Best Credit Counseling Services

Available services and fees vary by agency. When seeking help with your money and debt, here is what to consider when evaluating credit counseling agencies.

What Is Credit Counseling?

Credit counseling agencies provide financial advice and guidance and, if you're in debt, their counselors can help you develop a plan to pay it off. Often free or low-cost, credit counseling agencies give personalized tips and advice to address your unique situation.  Counselors frequently teach the following: 

• How to develop a budget and trim spending
• How to look up your credit reports and the importance of credit scores
• How to repay outstanding credit card debt
• How to buy a home for the first time and apply for a mortgage

If you are struggling with debt, your credit counselor may recommend a debt management plan. When you enroll your debts into a DMP, your counselor works with your creditors to develop a repayment plan. Credit counselors may be able to negotiate rate reductions in some cases. Going forward, you’ll make one payment to the credit counseling agency, and the agency will disburse it to your creditors on your behalf until the debts are paid off.

According to Kathryn Ellywicz, a marketing and communications specialist with GreenPath Financial Wellness, making just one payment under a DMP can be more manageable than juggling multiple credit accounts. 

"If you have multiple accounts and due dates, [making] one payment to the agency can simplify how you manage money and [reduce stress]," she said. In general, it often takes four or more years to repay all debts enrolled in a DMP.

Should You Sign Up for Credit Counseling?

If you're struggling with unsecured debt, such as personal loans or credit card balances, a credit counselor can be beneficial. They can help you get a handle on your debt and pay it off faster than you'd be able to do on your own. 

Finding a good credit counselor can also help prevent financial issues from starting in the first place. For example, home-buying classes from credit counseling agencies teach you how much house you can afford and how to get the best deal on a mortgage, so you don't overextend yourself. 

However, credit counseling cannot help with all forms of debt. In most cases, only unsecured debt can be enrolled in DMPs. Secured loans, such as car loans, aren't eligible.

Pros & Cons of Credit Counseling

Pros

• You may qualify for reduced interest rates: Credit counselors will negotiate with your creditors to potentially lower your interest rates. With a lower rate, you can save money over the life of the debt. 
• You may get out of debt faster: When you enroll in a DMP, you may qualify for lower rates and waived fees, and more of your payments will go toward the principal instead of interest. Over time, the lower rates will help you get out of debt faster. 
• You can build financial skills: Besides DMPs, credit counselors provide many services, including courses on budgeting, applying for a mortgage, dealing with foreclosure, bankruptcy, and managing student loan debt. 

Cons

• There may be fees: You may have to pay for certain credit counseling services, including DMPs. These fees can be waived under certain circumstances of financial hardship, however.
• You may have to go without a credit card: Typically, DMPs require you to close your existing accounts, and you cannot apply for new credit. For those who travel often or rely on credit, going without plastic can be a challenge.
• It may damage your credit score: When you close your credit accounts, your credit score may drop due to lack of available credit.

How to Compare Credit Counseling Services

Consider these factors when comparing credit counseling agencies:

• Nonprofit status: Nonprofit companies may be less likely to push their services on you when you may not truly need them.
• Accreditations and affiliations: The best credit counseling agencies are affiliated with one or more respected accrediting organizations, like the National Foundation for Credit Counseling Agency, the Financial Counseling Association of America, or the U.S. Department of Housing and Urban Development (HUD).
• Fees: Fees range by agency and state. For DMPs, Investopedia research found that fees tend to range from $0 to $99 for enrollment, and $0 to $75 per month thereafter. 
• Services: Available services vary by agency. For example, some agencies offer student loan counseling, foreclosure intervention, or bankruptcy counseling.

How to Stay Safe Using Credit Counseling

Credit counseling isn't always effective. Creditors may not agree to lower their rates or waive their fees, so a debt management plan may not help you save money. However, credit counseling tends to be a lower-risk option than other debt relief methods, such as debt settlement or bankruptcy. Credit counseling tends to be less expensive, and won't wreck your credit like debt settlement or bankruptcy would.

Alternatives to Credit Counseling

Credit counseling isn't for everyone. Depending on your situation, one of the following options may be a better fit: 

• Debt payoff apps or software: You can pay off your debt on your own using debt payoff apps or software programs that help you develop a repayment plan and stick to a budget.
• Debt consolidation/refinance: If you have high-interest credit card or personal loan debt, taking out a debt consolidation/refinance loan with a lower rate could help you save money and pay off the balances sooner. 
• Debt settlement: Debt settlement involves working with a debt relief company to settle your balances for less than you owe. However, debt settlement can be risky. "Such companies charge 15 to 25 percent of the … debt," warned Ellywicz. "Debt settlement companies cannot guarantee the amount of money or percentage of debt that one might save by using their services."
• Bankruptcy: If your debt is too substantial, or you have a significant amount of secured debt that's ineligible for a DMP, declaring bankruptcy may be a better choice. However, filing for bankruptcy can be an extensive and expensive process. 

How We Chose the Best Credit Counseling Services

To determine the best credit counseling services, we reviewed various databases, competitive analyses, consumer behavior, and more, ultimately narrowing down the list to 40 companies, including 17 companies that offer credit counseling services that include debt management plans. We developed a quantitative model where we identified 53 important criteria across five categories. We weighted each category as follows for this article:

• Costs and fees: 37.00%
• Availability: 19.50%
• Reputation and stability: 18.50%
• Customer experience: 9.00%
• Services: 16.00%

We then gathered data for the 53 criteria directly from companies via websites, media contacts, and existing partnerships. Data were collected between Oct. 19, 2023, and Dec. 18, 2023. This resulted in over 2,000 data points in our rubric, which we used to score and determine the best debt relief companies (including debt settlement and credit counseling services) for people looking to manage and get out of debt.

To learn more about our process for finding the best debt relief companies, read our full methodology.

Guide to Credit Counseling Services and Debt Relief

• Credit Counseling: What It Means and How It Works
• How to Find a Credit Counselor
• Debt Management Plans: Everything You Need to Know
• How to Choose a Debt Management Plan
• Pros and Cons of Debt Management Plans
• National Foundation for Credit Counseling (NFCC)
• What Is a Debt Relief Program?
• How to Get Debt Relief
• Debt Relief vs. Bankruptcy
• Debt Settlement: Cheapest Way to Get Out of Debt?