The companies that handle debt management like Payday Champion collaborate with your creditors to help you restructure your loan so that it is easier to pay it off. They do this by developing a debt management program (DMP) specifically tailored to your situation. DMPs – non-profit consumer credit counseling agencies provide the most effective – roll your unsecured debts into one monthly payment, easing the process of repayment.
The top debt management companies are not-for-profit and have fee structures that are transparent and low. They also have many years of experience and good customer service and accreditation by an industry watchdog like the National Foundation for Credit Counseling (NFCC).
How to Choose a Debt Management Company
The most reliable and beneficial debt management programs are usually provided by debt management firms classified as non-profit consumer credit counselors. They offer counseling and financial education with qualified counselors. Here’s what you should be looking for when selecting an organization for debt management:
- Accreditation. If you want to identify a credible counselor, be sure that they are accredited by an established and reputable institution like The NFCC and the Financial Counseling Association of America (FCAA). Also, make sure you check with the office of your state attorney general and verify the firm’s score by the Better Business Bureau.
- Be reasonably transparent concerning its costs. The business should provide an estimate of the cost. Most firms charge a set-up (also known as enrollment cost) and the monthly price for managing debt. Ensure the set-up fee is less than $75, and the monthly cost is less than $50. Certain companies permit negotiation of the waiver of fees under certain circumstances.
- Non-profit status. The most trustworthy firms in this field typically are nonprofit organizations. Some for-profit companies also offer this service.
- The business you choose to work with must have a lengthy record of happy customers. Do not only search for a company with an excellent score on Trustpilot or the Better Business Bureau but also read the reviews from customers. It’s crucial to understand what areas a company excels in and fails.
- The length of time a company has been in operation. A longer record of accomplishment is indicative of a business’s capacity to collaborate with creditors. The amount of experience is vital.
- Digital experience. If mobile and online access are crucial to you, you should check the company you pick regarding online chat apps, digital tools, and accessibility.
- Other services. The agencies usually offer an initial consultation session for free. Choose a business that will provide educational materials and classes regarding budgeting and managing debt.
It is essential not to enroll in the debt management plan until a licensed credit counselor has assessed the situation of your finances. Credible credit counseling companies can assist you in creating budgets and improving your financial management.
We looked at 25 debt firms that offer debt management plans to create our top list of companies to manage debt. We evaluated each company using 18 information points across the categories of charges and availability, customer satisfaction and experience, history of digital experience, and quantity of services they offer. We selected the top five firms for managing debt according to the weighting given for each of the categories:
- Fees: 25%
- Availability: 25%
- Experience and satisfaction of customers Experience and satisfaction: 20 percent
- History: 20%
- Digital experience 5 percent
- The number of services: 5.5%
We looked at several aspects in each category, such as the cost to manage debt, Better Business Bureau score, Trustpilot rating (if available) and the length of time in business, and accreditation by industry watchdogs. We also looked into whether the business was a non-profit organization offering free consultations and credit counseling services. We also evaluated the experience provided by each company’s digital platform through their mobile application and website. To make it on the list, the firm’s debt management solutions must be widely accessible throughout the U.S.