Top Debt Management Companies (For Profit)

Debt management companies exist to assist people who have found themselves overwhelmed by financial worries. If you have found yourself unable to repay your creditors each month while also keeping up with monthly living costs, it might be time to seek out a debt management company in your area.

What a debt management company can do is assist you in finding a way to eliminate your debt in a way that works for your budget. Many companies offer a large range of services including debt management plans, debt consolidation and debt settlement. A credit counselor can assist you in deciding what solution will work best for your particular situation.

There are hundreds of debt management companies currently operating in the United States. Many of these companies are little more than shams designed to take advantage of desperate people. If you don’t have the right information, it can be difficult to find a legitimate company that has your best interests at heart.

This article will give you the knowledge you need to choose a top-quality, for-profit debt management company that will help you on your way to becoming a debt free individual.

For Profit versus Non-Profit

Once you’ve decided to seek help from a debt management company, you have the choice of working with either a non-profit or for-profit organization. Some States require that all debt management organizations operate as non-profits but this is not always the case. There is very little difference between for-profit and non-profit debt management companies, aside from the fact that non-profits do not pay tax. Both exist to assist you in creating a structured repayment strategy and eliminate your debt over a period of time.

Keep in mind however that although the federal government requires that for-profit debt management organizations seek licensing, they do not require it of non-profits. Therefore you may feel safer choosing a for-profit organization as you have the assurance that if they are licensed, they are most likely legitimate. Again, this is not always the case and it is important to do your research before signing any contracts or paying any fees.

Both non-profits and for-profits charge fees for their services. These should never exceed $150 for enrollment or a $30 monthly fee. The purpose of working with a debt management company is to get out of debt, not create more of it. They’re not in the business of making money off of you. Any company that demands payment up front prior to offering any assistance is probably not legitimate.

What To Expect

It can be embarrassing to admit you need help with your finances, but a legitimate debt management company can help you overcome what may seem at first to be an insurmountable amount of debt. There are few things you can expect to receive from a debt management company.

A good debt management company will always offer to review your finances with you in person if possible. A credit counselor cannot promise anything without first weighing your situation against their own knowledge of the industry. There is no one-size-fits-all approach to debt management. After working with your credit counselor you should always receive an individualized debt repayment plan in writing, with details covering the payment schedule, amount, and any guarantees the company has offered. This will give you the opportunity to review the plan before agreeing to it.

In addition, a legitimate debt management company will have accreditation from any number of national foundations dedicated to monitoring business practices in the industry. You can check a debt management company’s credentials with several national accrediting foundations that act as industry watchdogs. The most prominent of these are the National Foundation for Credit Counseling and the American Association of Debt Management Organizations. Both organizations offer searchable databases on their websites which you can use to find a credit counselor in your area. The Better Business Bureau can also assist you in finding a legitimate and well-regarded organization that you an trust.

Remember that getting out of a debt is a long process that requires commitment and will-power to complete. Beware of any company that promises that they can help you eliminate your debt in 3-months or less. This is nearly impossible to do if you have a substantial amount of debt and have already suffered damage to your credit score. Most repayment plans will take a year or more to complete.

Top Companies

Here is a short list of top companies currently operating as for-profit debt management organizations. Many of these companies have licenses to work in several States and offer a long list of services. Many of them also offering low-cost money management courses to their customers, which will help you stay debt-free after you have successfully eliminated your debt. Taking the time to research a company before agreeing to work with them can save you a lot of hassle in the long run, as well as money.

Abacus Credit Counseling

Allen Credit & Debt Counseling Agency

Consumer Alliance Processing Corporation

Consumer Bankruptcy Counseling

Curadebt

Debt Options

Evergreen Financial Counseling

InCharge Education Foundation, Inc.

Money Management International

Money Sharp

Sure Stand Credit Counseling