Credit Counseling
Credit counseling is a service — typically offered by nonprofit agencies — that reviews your budget, provides financial education, and discusses your options for managing debt. It can, but doesn't always, lead to a debt management plan (DMP). This guide covers the broader topic; if you already know you want the DMP-specific details, see our Credit Counseling vs. Debt Settlement page in the Debt Consolidation cluster.
Looking for the Debt Management Plan Specifically?
See our Debt Management Plans page for that specific path rather than the broader credit counseling topic covered here.
Nonprofit vs. For-Profit Landscape at a Glance
Most reputable credit counseling is offered by nonprofit agencies, though "nonprofit" doesn't automatically mean free. See Nonprofit Credit Counseling for the full picture, including how these agencies are typically funded.
What a Typical Session Looks Like
A first session generally covers a review of your income and expenses, an overview of your debts, and a discussion of realistic options — with no obligation to enroll in anything. See Credit Counseling Basics for the details.
How Credit Counseling Compares to Other Paths
At a glance, credit counseling is voluntary and generally doesn't reduce your principal balance — it's more about restructuring how you repay through better rates and a single organized payment. See our Credit Counseling Comparisons page for how it stacks up against settlement, consolidation, and bankruptcy specifically.
Frequently Asked Questions
What does a credit counselor actually do?
Reviews your budget, provides financial education, and discusses your options — including, if appropriate, a debt management plan. Read more →
Is credit counseling free?
The initial session is often free or low-cost, though fees may apply if you enroll in a debt management plan. Read more →
Is credit counseling the same as a debt management plan?
No — credit counseling is the broader service; a DMP is one possible outcome of it. Read more →
How does credit counseling compare to debt settlement?
Counseling generally doesn't reduce what you owe; settlement can, but at a steeper credit cost. Read more →
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Costs & Comparisons