Credit Counseling Nonprofit guidance on budgeting and debt repayment, sometimes through a structured payoff plan

Credit counseling is guidance from a usually nonprofit agency that helps you build a budget and create a plan to repay your debts. Counselors review your income, expenses, and balances, then suggest options that may include a Debt Management Plan (DMP), where you make one monthly payment that the agency distributes to your creditors. To find one, the CFPB suggests starting with the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America; the FTC cautions that nonprofit status alone doesn't guarantee a counselor is affordable or legitimate. Credit counseling also plays a legal role: pre-bankruptcy credit counseling from an approved agency is required before you can file. Sessions are often free or low-cost, and a reputable counselor will explain the tradeoffs of each option rather than push a single product. Results vary based on your debts, budget, and which creditors agree to participate.