A debt management plan reorganizes what you owe
A nonprofit counseling agency sets up one monthly payment and works with your creditors, often to lower interest or drop fees. You still repay the full balance. Ask about the agency's fees, which debts can be included, and what changes on each account.
Settlement tries to pay less than the balance
A settlement company asks creditors to accept a reduced lump sum, usually after you've stopped paying for months. Creditors can say no. In the meantime you may face late fees, collection calls, a damaged credit file, and possibly a lawsuit.
Try the alternatives first
Call your creditors and ask about hardship programs. Book a session with a nonprofit counselor. If the debt is large, talk to a bankruptcy attorney about your options. Compare every path on what it costs after fees and what you'll have left when it's over.
Now put it to use
Take these questions to the comparison and see which company answers them best.
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