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What Is the Difference Between Credit Counseling & Debt Management Services?

Debt management services and credit counseling are basically two terms to describe the same service and that service is helping a consumer consolidate their unsecured (mostly credit card) debt into one payment typically with reduced interest rates and fees. Technically, an industry insider will say that credit counseling companies provide a broader range of services that just debt management, however, at their core, their primary service is offering debt management programs. Most TV and radio ads talk about credit counseling, I prefer to use the term debt management because I think it defines the service they provide more accurately.

You often hear the phrase non profit credit counseling. However, be aware that not all debt management companies are non-profit. Some remain for profit companies which is not a bad thing but it is something to be aware of since for-profit companies are not as closely regulated by the government as the non-profits. Some for profit debt management companies found themselves in a heap of trouble years ago when the government fined or closed down many companies with unacceptable (often fraudulent) business practices.

This resulted in many changes in the credit counseling/debt management business causing some companies to become non-profit (and highly regulated) and others to go out of business

My recommended debt manangement companies are non-profit organizations who provide valuable services with affordable fees.