Frequently Asked Questions

You can always speak with one of our credit and debt advisors, who are NFCC-certified credit counselors, at no cost. Budget reviews, credit guidance, money management materials and all consultations are always free. If you choose to enroll in our debt management program, there is a modest fee based on a sliding scale. In 2025, the average monthly fee our clients paid was $28, and the average one-time enrollment fee was $39. These fees are included in your monthly payment and help cover the cost of servicing your plan.

Family Credit Management has been helping people get out of debt for over 30 years. Since opening our doors in 1996, we’ve worked with hundreds of thousands of individuals and families across the country to simplify their payments, lower their interest rates, and achieve financial peace of mind.

Yes! We are a nonprofit agency, licensed and approved to provide credit counseling services. Being a nonprofit means we’re not in this to profit off your debt. Our mission is to provide honest, practical help that empowers you to become debt-free—and stay that way.

We’ve been helping people conquer debt—with compassion and credibility—for over 25 years. We’re one of the largest nonprofit Debt Management organizations in the country, licensed and trusted by hundreds of thousands of individuals and families who’ve walked the same road you’re on now. We’re not just legitimate; we’re held to some of the highest standards in the industry:

• Licensed by state banking departments across the U.S.,
• ISO certified and audited annually,
• A+ rating with the Better Business Bureau,
• Client funds held in dedicated trust accounts with full transparency.

We make getting help easy and accessible, with flexible payment options (Autopay, online, by phone, or by mail), 24/7 online account access, and digital statements delivered straight to your inbox. But what really sets us apart? Our people. We don’t use scripts. Our counselors take the time to listen (really listen) to your situation and walk you through real solutions that make sense for your life. Many of us have been through financial hardship ourselves, and we know how overwhelming it can feel. When you talk to us, you’re not just another account. You’re a person with a strong future and we’re here to help you reach it. Take a look at our client reviews, check out our management page to learn more about us, or get started with a free quote now!

Family Credit Management is a 501(c)(3) nonprofit credit counseling agency that helps individuals and families regain control of their finances. Our main service is a Debt Management Plan (DMP), which consolidates your unsecured debt—like credit cards, finance company loans, payday loans, and medical bills—into one affordable monthly payment. We work with your creditors to reduce interest rates, stop late fees, and help you pay off debt faster.

If you are able to make payments directly to your creditors before your first payment to us, we never discourage it. Just make sure it does not jeopardize your first payment to us, which is essential to get your program started on time.

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That said, most of our clients cannot afford to do both, and that is perfectly okay. Creditors typically do not report credit cards as past due to the credit bureaus unless two payments are missed. In many cases, once your payments through us begin, creditors will bring the accounts current.

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Yes, in most cases. Creditors require accounts to be closed in order to offer benefits like reduced payments, lower interest and no more late or over limit fees. Closing the account shows you are committed to paying off your debt, and that is one reason they are willing to help.

We know this can feel scary to some, but credit cards are often a source of financial stress. They are a tempting way to spend and one of the most expensive ways to borrow money. Choosing to stop using them is a smart step if your goal is to get out of debt for good.

Some people worry that closing a credit card will erase their payment history, but that is a common misconception. The full history of your payments, past present, and future, stays on your credit report for years. If you keep making payments on time, even after an account is closed, that positive history will continue to build your credit in the right direction.

If you have a credit card you’d like to keep open and outside of the program for emergencies, that can usually be arranged. Just let us know and we’ll talk through the options

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Yes! You can absolutely pay extra toward your plan whenever you’d like, whether it's a one-time bonus payment, a tax refund, or just a good month. There are no penalties or fees for paying more than your scheduled amount. Paying extra can help you finish your plan faster and reduce the total interest you pay over time. If you'd like help applying an extra payment strategically, just reach out. We’re happy to guide you!

Yes, in most cases you can! If you have a new account you'd like to include—or one you didn’t list originally—we can usually add it to your existing plan. It’s a common situation, and we’re happy to help you make the update. We’ll review the account, confirm if it qualifies, and let you know exactly how it would affect your monthly payment or timeline. We make it easy to keep your plan flexible as life changes!

Once you enroll, we get to work right away. As soon as you’ve made your first payment, we’ll notify your creditors and begin setting up your Debt Management Plan or hybrid plan. Here’s what typically happens:

• You make one monthly payment to us,
• We pay your creditors according to the agreed terms,
• You get access to your online account where you can track progress, view statements, and make updates.,

We stay in touch to answer questions and support you as life changes. Most clients start seeing reduced interest rates, stopped late fees, and a sense of relief pretty quickly. If anything changes along the way, we’re just a phone call, email, or text message away.

No. Once your plan is in place, you’ll make a single monthly payment to us, and we’ll handle the payments to each of your creditors. You’ll receive a monthly statement showing exactly where your payment went, and you can check your account status at any time through our online portal.

That’s exactly what our program is designed to help with! We work with your creditors to lower your interest rates, often down to single digits, and stop ongoing late fees, over-limit charges, and other penalties. By consolidating your unsecured debts into one affordable monthly payment and reducing the interest, more of your money goes toward actually paying down the balance instead of just chipping away at interest. That means faster progress and real savings over time. Every creditor is different, but we’ll let you know what kinds of concessions you should qualify for when you receive your free quote.

In many cases, you have flexibility in choosing which unsecured debts to include, but there are some exceptions. Certain creditors require all of your accounts with them to be included in the plan in order to offer benefits like reduced interest rates. That said, plenty of creditors don’t have restrictions, and we’ll walk you through what’s possible with each one. Our counselors will help you weigh the pros and cons so you can make informed decisions that work best for your situation.

A Debt Management Plan (DMP) is a voluntary repayment program where you pay back what you owe—often with reduced interest and waived fees—through a structured, affordable monthly payment. It does not involve the courts, and it’s not public record. Bankruptcy, on the other hand, is a legal process that can eliminate certain debts entirely, but it comes with significant consequences. It may stay on your credit report for up to 10 years, can impact your ability to qualify for future loans, and may not discharge all types of debt (like student loans or tax debt). Debt management is often a better option for people who want to repay what they owe, avoid legal proceedings, and minimize long-term damage to their credit. We’re happy to talk through options let you know what we feel is right for your situation, whether that’s enrolling on a plan like ours or not.

Our hybrid plan is a flexible solution that combines the structure of a DMP with the option to settle some debts when appropriate. This can be a good fit for people whose financial situation doesn’t align with a traditional plan, or who have certain accounts better suited for negotiation. We’ll walk through your situation and help determine which accounts may qualify for settlement versus structured repayment. As with everything we do, we’ll tailor the approach to your needs and explain every step before you make a decision.

Debt settlement is a process where you negotiate with a creditor to pay less than the full amount you owe, typically in a lump sum or over a short period of time. In exchange, the creditor agrees to consider the debt resolved or “settled.” While this option can reduce the total amount you pay, it can also have serious credit consequences and may come with tax implications. Not all creditors accept settlements, and timing is critical. At Family Credit Management, our hybrid plan may include debt settlement where appropriate. If we think it’s a good fit for part of your situation, we’ll explain the pros, cons, and what to expect before you commit.

A Debt Management Plan consolidates your eligible unsecured debts into one monthly payment. We work with your creditors to:

• Lower or eliminate interest rates,
• Stop late fees and over-limit charges,
• Create a reduced payoff timeline

You make one monthly payment to Family Credit Management, and we disburse it to your creditors on your behalf. Most people pay off their debt faster than they could on their own—and with far less stress.

We work with tens of thousands of major banks, credit card companies, collection agencies, and other lenders across the country. That includes many of the most well-known national creditors, as well as regional and specialized lenders. Because we're an established nonprofit agency, many creditors already have guidelines in place for working with us, often offering reduced interest rates, waived fees, or other benefits when you enroll in a debt management plan. If you have a specific creditor in mind, we’re happy to check whether they participate and explain what kind of concessions may be available in your situation.

We can help with most types of unsecured debt, including: Credit cards, Medical bills, Payday loans, Unsecured Personal loans, and Collection accounts. We cannot include secured debts like mortgages or most auto loans in a Debt Management Plan, but we’re happy to review your full situation and help you make a plan.

We offer both traditional Debt Management Plans and a hybrid plan that may include negotiated settlements in certain cases, giving us more flexibility to find the best fit for your situation. Our goal is to help you pay off or resolve your unsecured debts in a way that’s structured, affordable, and sustainable. Unlike many companies that push one-size-fits-all solutions, we take the time to understand your full financial picture and walk you through your options without pressure or gimmicks. Many of our clients are able to significantly lower their interest rates, simplify their payments, and get out of debt faster. You don’t need to take out a new loan, and you don’t have to talk on the phone unless you want to. We’re here to meet you where you are and support you every step of the way.

We begin contacting your creditors right after you enroll in the program and your first payment is made. Timing is key; we want to make sure everything is lined up so your plan gets off to a strong start. We'll send proposals to your creditors outlining the new payment terms, and most will respond quickly with their acceptance and updated terms. If a creditor needs additional information or makes a counteroffer, we’ll handle the communication and keep you in the loop every step of the way.

Yes. Your information is kept private and secure, and we will never sell, rent or give your name or address to any party for any promotional reason or share any personal details without your consent. We’re licensed and audited regularly, and we take data security very seriously. If you want to keep your enrollment private from a partner or family member, we’re happy to set things up accordingly. You’re in control of what you share and with whom.

Yes, always! You’ll have ongoing access to our team throughout your entire time on the program. Whether you need to update your plan, adjust a payment date, or just ask a quick question, we’re here. You can reach us by phone, email, or text. We know this isn’t a one-and-done process. Life happens, and we’ll be with you the whole way.

Not at all, it’s 2026, after all! We’ll work with you however you prefer: email, text, phone, or a mix of all three. No pressure, no surprise calls. We even have a “no phone calls” option right on our application so you can let us know upfront if you’d rather not be contacted by phone. We added that because we know how frustrating it is when other companies hound you with calls from salespeople. That’s not how we operate. In fact, none of our team members work on commission. You’ll never get a pushy pitch, just honest answers and support, at your pace and on your terms.

The two biggest parts of your credit score are paying on time and reducing your balances, and this program helps with both. Some accounts may be closed, and that can feel concerning because many people believe closed accounts no longer count toward your score. But closing an account does not erase your payment history. All payment history remains on your credit report for years. If the account is paid on time, even after it is closed, that record can continue to help your score.

In some cases, closing accounts can cause your score to drop slightly, especially if you currently have a good credit utilization ratio, which means your balances are low compared to your total credit limit. When an account is closed, your overall credit limit decreases, which can increase your utilization ratio and impact your score. But most of our clients have their credit cards close to the limit, meaning their credit utilization is already high. In those cases, closing accounts does not make a big difference, and the more important step is getting balances down.

Everyone’s credit is different, and no one can predict exactly what your score will be in a year or three. But we do know that making consistent payments and reducing or paying off balances leads to a stronger score, and makes you someone lenders are eager to lend to again.

Creditors want to know that you’re serious about repaying your debt and that you’re treating all your creditors fairly. Getting meaningful concessions like lower interest rates or waived fees can be tough without the structure and credibility of a formal program. If one account is still getting paid normally while another is asked for concessions, they’re less likely to agree to help. That’s where the Debt Management Plan comes in. By enrolling through Family Credit Management, you’re showing a clear, organized commitment to repaying your debts. Creditors know us, trust us, and are often more willing to offer real benefits because of our track record and reputation. In many cases, they’d much rather work with us (and with you) than turn your account over to collections or lose it to bankruptcy.

No. You do not need to be behind to qualify. In fact, many clients enroll before they’ve missed any payments to avoid falling behind and damaging their credit. If you’re finding it hard to keep up or are relying on credit just to make ends meet, it’s a smart time to talk with us. Acting early often leads to better results!

Yes, we may still be able to help. While our program doesn’t stop legal action that’s already been filed, we can often work with the creditor or collector involved to include that account in your plan or help you settle it. Every legal case is different, but the sooner we have all the details, the more options we may have to help reduce the damage and resolve the issue affordably.

That’s not only completely okay, it’s actually very common. We help people in all stages of financial stress, including those who are behind on payments or have accounts in collections. In many cases, creditors will still offer benefits like lower interest rates and waived fees once you’re enrolled in a Debt Management Plan. We’ll take a look at your situation and walk you through what to expect with each of your accounts.

Once you complete your plan, you’ll be debt-free from all the accounts included and you’ll have built a strong track record of repayment. Most clients also gain better money habits, improved budgeting skills, and peace of mind. We’ll provide a final summary of your completed accounts, and we’ll still be here if you need guidance or support down the road. Many people say finishing the program feels like getting their life back, and we’re honored to be part of that!

Making your monthly payments on time is critical to keeping your plan, and the benefits from your creditors, on track. Many creditors offer reduced interest rates or stop fees based on your consistent payment history, so staying current is a big part of your success. That said, we know life doesn’t always go as planned. Some creditors may allow a missed payment or two over the life of your program, while others have stricter guidelines. If something comes up and you can’t make a full payment, it’s important to contact us before your due date. Our client services team can walk you through your options and work with you to find the best solution. Reaching out early gives us the best chance to keep your plan (and your progress) moving forward.

Yes! There are no prepayment penalties or fees. If you’re able to pay extra toward your plan, either one time or on a regular basis, you can absolutely do that. We want to help you get out of debt as soon as possible!

Before you send extra, we recommend setting aside a small emergency fund first, ideally in a high-yield savings account at a different bank than your regular checking. That extra step makes it less tempting to dip into the savings for impulse purchases, while still keeping the money accessible for unexpected expenses.

When you send extra funds to us, we will apply them where we believe they will have the greatest impact, usually toward the highest interest account. Of course, if you prefer to target a specific debt, just let us know.

Most people finish the program in 3 to 5 years, but the exact timeline depends on how much debt you have, how much you can afford to pay each month, and how your creditors structure their repayment terms. We’ll give you a clear estimate up front, and you can view your progress anytime in your online account. If you want to complete your debt management program faster, we’ll help you build a plan to do just that.

That’s completely okay! Taking the first step toward dealing with debt can feel overwhelming and we’re not here to pressure you. Whether you're just exploring your options or seriously considering a plan, we’re happy to talk through your situation and answer any questions you have. Our quotes are free, there’s no obligation to sign up, and we’ll never push you into something that doesn’t make sense for your life. We’ll give you honest feedback, a clear picture of what’s possible, and time to think it over. You don’t have to have it all figured out, just reach out when you're ready! If you want to start with finding out what debt you have that we work with and what plan would be a good option for you, submit a Free Quote request. You can also take our How Serious is My Debt? Quiz to help you determine if you need professional assistance or if some personal work like budgeting will do the trick!

No problem! We’re here to help with anything you’re wondering about. Every financial situation is different, and we know not every question fits neatly into a list. You can email us at counseling@familycredit.org, call, or submit a free quote form or a contact a credit counselor form anytime with your specific question. We’re happy to walk through your unique circumstances, explain your options, and make sure you feel confident about the next steps. There are no bad questions, just honest ones. We’re ready when you are!

Secured debts like mortgages, auto loans, or anything tied to collateral typically can’t be included in a Debt Management Plan. However, we can still help you build a budget that takes those payments into account and helps you stay current on everything.

Yes, many personal loans, payday loans, and medical debts can be included in your plan, especially if they are unsecured and with creditors who participate in our programs. Each situation is unique, and we’ll review your debts one by one to let you know what can be included and what your options are.

In most cases, no. When you enroll in a Debt Management Plan, your enrolled credit cards are typically closed as part of the agreement with your creditors. This helps prevent additional debt while you focus on repayment, and it’s often required in order to get reduced interest rates or other benefits. You may be able to keep one card out of the plan for emergencies or travel, but we’ll talk through your full situation and explain what’s allowed based on your creditors and your plan type.