Debt Management
Debt Help: Compare Your Options and Find What’s Right for You
Debt can feel overwhelming, but understanding your options is the first step toward regaining control. At Take Charge America, a nonprofit credit counseling organization, we help you explore different ways to manage and repay your debt — with education, transparency, and your long-term financial well-being as our priorities.
This page explains the three most common debt-relief approaches:
You’ll learn how each works, the possible advantages and limitations, and how to decide which path may fit your situation.
Struggling with debt? Get free expert Help today.
Start With Credit Counseling
Before choosing any debt solution, we begin with credit counseling — a one-on-one session with a trained nonprofit counselor who reviews your full financial picture and helps you understand your options without pressure.
Nonprofit Debt Management Repayment Plans
A debt management plan (DMP) helps you repay unsecured debts — like credit cards — through a structured repayment program. As part of a DMP, your counselor negotiates with participating creditors to secure lower interest rates, waived fees, and one consolidated monthly payment.
How It Works
What is Debt Consolidation
Debt consolidation combines multiple debts into a single loan or payment. This approach does not eliminate your debt. Rather, it restructures it into a different form, often with more predictable monthly payments.
Debt consolidation can be done through:
- A personal loan
- A balance transfer credit card
- A home equity line or loan (for homeowners)
How It Works
You take out one loan or credit line to pay off multiple existing debts. After that, you make one monthly payment to the new lender.
What is Debt Settlement
Debt settlement is an agreement between you and a creditor to pay less than the full balance owed. Settlement companies typically negotiate with creditors to accept a reduced amount as full payment.
How It Works
You stop paying creditors directly and start saving funds in a special account. Once enough is saved, the settlement negotiator attempts to settle with creditors for less than the owed amount.
How Credit Counseling Supports Every Path
No matter which strategy you’re considering, credit counseling is the place to start. Your counselor will:
Review your income, expenses, and full debt picture
Session
Explain the pros and cons of each option
Review
Help you choose a plan that aligns with your financial goals
Provide education on budgeting, credit, and financial decision-making
Frequently Asked Questions About Debt Management
Do I need good credit to qualify for a debt management plan?
No. Debt management focuses on your ability to make a plan to make a payment each month, not your credit score.
How does a debt management plan impact my credit?
Participation may show up on your credit report as a managed repayment plan. Over time, consistent payments can help rebuild credit.
Which debts can be included?
Typically, unsecured debts include credit cards, personal loans, and medical bills.
Can I still use my credit cards while on a plan?
Most people are encouraged to stop using credit cards while enrolled in a plan to avoid increasing balances.
How long does a debt management plan take?
Most plans last 3–5 years, depending on your debt and repayment terms.
What makes Take Charge America different?
We are a nonprofit credit counseling organization dedicated to education first. Our goal is your long-term financial wellness, not quick sales or high fees.
Ready to Explore Your Best Path Forward?
Take Charge America’s nonprofit counselors are here to help you compare options and choose the approach best suited to your goals
Take Charge America’s nonprofit counselors are here to help you compare options and choose the approach best suited to your goals
- Sessions are free, confidential and no pressure to enroll.
- Personalized review of your situation
- No obligation
Need Help? Contact Us
Have questions or need support? Our team is here to assist you.
