A credit counseling agency is an organization that offers advice and assistance to people who are having trouble managing their debt. When you sign up, a credit counselor will analyze your case and work on your behalf to negotiate with your creditors. You can meet with them in person, online or over the phone.

Most credit counseling agencies are nonprofit, meaning their services may be available for free or at a reduced cost based on your situation and qualifications.

Highly rated credit counseling agencies

American Consumer Credit Counseling

American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling agency founded in 1991. The ACCC does not charge for budget counseling, although there is a one-time fee of $39 for enrollment in a debt management program — although this can be waived or reduced based on your state’s regulations. There is also a monthly maintenance fee per account of between $7 and $70.

The ACCC has an A+ rating from the Better Business Bureau with an average customer rating of 4.96 stars out of 5.

Pros

• Free budget counseling.
• Some fees can be reduced or waived .
• Manage your account online or through the app.

Cons

• Not available in every state.
• Fees can be high.

Family Credit Management

Family Credit Management is a nonprofit whose certified credit counselors have been helping consumers for over 20 years. The organization charges a one-time account set-up fee (approximately $40) and a $30 monthly account administration fee; however, you may be eligible for a reduced or waived fee.

Family Credit Management is a longtime member of the Better Business Bureau with an A+ record. It serves consumers in all 50 states.

Pros

• Free quote.
• Fees based on sliding scale.
• Choose your due date.

Cons

• You have to stop using your credit cards.
• Primarily manages unsecured credit.

Cambridge Credit Counseling Corp.

Cambridge Credit Counseling is a nonprofit established in 1996. It offers a free initial consultation.

Cambridge Credit Counseling employs third-party certified credit counselors who undergo extensive training and continuing education. The organization is a HUD-Approved Housing Counseling Agency and a member of the Financial Counseling Association of America (FCAA) and the National Foundation for Credit Counselors (NFCC).

The average startup and monthly fees for clients are $40 and $30, respectively, and are capped at $75 and $50. Costs will vary based on your state.

Pros

• Highly-trained and certified counselors.
• Counseling for housing, student loans and other major financial challenges.

Cons

• Higher startup fee than competitors.
• Your credit accounts will be closed.

Consolidated Credit Solutions

Since 1994, Consolidated Credit Solutions has helped over 10 million people get out of debt. It offers multiple debt and debt management services, including guidance on debt consolidation loans, balance transfers, bankruptcy, debt settlement and debt management.

Consolidated Credit Solutions is a member of the FCAA and a HUD-Approved Housing Counseling Agency. It offers a free initial consultation. On average, consumers pay $40 per month for a debt management plan.

Pros

• All counselors are certified financial counselors.
• Monitor your account online or through the mobile app.
• Extensive online library of financial resources.

Cons

• Startup and monthly fees are not clearly disclosed on the website.
• Its website can be difficult to navigate.

GreenPath Financial Wellness

GreenPath Financial Wellness has over six decades of experience with credit counseling. Available in all 50 states, GreenPath partners with hundreds of credit unions and banks and offers an extensive list of debt counseling services. Its HUD- and NFCC-certified counselors can assist consumers with credit, student loans or housing services.

GreenPath Financial Wellness doesn’t charge fees for counseling sessions, which last about an hour each. If you choose to move forward with a personalized debt management plan, you’ll be responsible for a one-time enrollment fee of $35 and a $28 monthly fee.

Pros

• Free counseling sessions.
• Lower debt management fees than many competitors.
• Choose from a range of debt solutions.

Cons

• Complaints about poor customer service.
• Reports of technical issues with the online portal.

Money Management International

Money Management International (MMI) is a nonprofit that has worked with over 2.5 million individuals and families, helping clients repay $10 billion in debt. Through its Project Porchlight initiative, MMI works with individuals who live in a place where a federal- or state-declared disaster has taken place and offers a recovery plan through a certified counselor.

MMI offers free counseling sessions, but does charge for debt management plans. Fees vary by state and amount of debt, but on average clients pay a $33 set-up fee ($75 max) and a $25 monthly fee ($59 max). MMI is HUD-certified and a member of FCAA and NFCC.

Pros

• Fees are lower than many competitors.
• Special disaster recovery plans.

Cons

• Does not reduce the amount you owe.
• In-person services are only available in 25 states.

How to choose a credit counseling agency

Several resources can help you find approved and reputable credit counseling services, including your state’s attorney general office and consumer protection agency. You can also search for a list of approved credit counseling agencies through the Department of Justice.

The Financial Counseling Association of America and the National Foundation for Credit Counseling also offer directories for finding reputable agencies. You can also look for a credit counselor through a credit repair company.

As you’re making a choice between credit counseling services, you’ll want to look for a few important features:

• Certified counselors: Before signing up, confirm if an agency uses certified credit counselors. Counselors with a reputable agency are likely certified in consumer credit, money and debt management and budgeting.
• No personal information upfront: The Consumer Financial Protection Bureau also warns consumers that they should be able to get free information from a credit counseling service without first providing personal information. If an agency insists on personal information up front, this is generally a red flag.
• Transparent fee schedule: One of the most important aspects of choosing a consumer credit counseling agency is selecting one that offers complete transparency regarding fees. Even though credit counseling agencies fall under nonprofit status, some charge hefty fees. Choosing one that discloses its pricing upfront is key.

How to protect your finances when using a credit counseling service

If you decide to move forward with a credit counseling service, you can take steps to ensure you select a legitimate, reputable agency. The Federal Trade Commission (FTC) suggests you inquire about an agency’s licensure status, the qualifications of its counselors and its services. Avoid any agency that promises to fix all your financial woes or requires you to pay money up front before starting counseling.

You can also ask about the fee structure and what measures the agency uses to ensure your information remains secure and out of the hands of scammers or identity thieves. Inquire about employee compensation and whether the counselors earn more if you sign up for certain services (as this is often another red flag).

Bottom line

You don’t have to face your debt alone. Credit counseling services can offer support by helping you manage your payments and even negotiate on your behalf. Before partnering with a credit counseling service, ensure it’s legitimate by checking for membership with the FCAA or NFCC. Only work with organizations that have transparent pricing and use certified counselors.