What is Credit Counseling and Debt Management?
Debt management is an opportunity to pay your bills while getting the "breathing room" from your creditors to establish a budget that you can live with. Debt management plans can reduce your payments, re-age your obligations to improve your credit standing and even reduce or eliminate the interest on your debts.

Is debt management better than bankruptcy?
Debt management is a great alternative to bankruptcy. In bankruptcy you may have to go to court, have your personal property taken or sold and it will follow you on your credit report for up to ten years. Debt management allows you to repay your debts in a reasonable period of time with payments that you can afford.

Why can't I set up my own debt management program?
Credit counselors work with creditors across the nation to make a win-win situation. In a debt management program, you "win" because you get a new payment schedule that you can afford on your budget and the creditor "wins" too because they get repaid. When your creditors agree to change the terms of your original credit agreement through a debt management program, they know that you have had a professional budget review and are committed to making the new payment schedule work.

What if I can't pay my bills even in a debt management program?
Some consumers find that they are so deep in debt that not even a debt management program can help. Bankruptcy should only be considered as an absolute last resort! If you have questions about whether or not to file bankruptcy, be sure to consult with a credit counselor to determine if you can qualify for special bankruptcy-prevention programs.

Why do some organizations say that they're "non-profit" or "not-for-profit"?
"Non-profit" and "not-for-profit" both have the same meaning. A "non-profit" or "not-for-profit" organization is usually understood to be a tax exempt charitable organization that has been certified by the Internal Revenue Service (IRS) as performing a public service function by helping individuals and families control their debt, keeping them out of bankruptcy and creating workable budgets. A "non-profit" or "not-for-profit" organization does not have owners and does not provide profits to shareholders like corporations.