They will set you up with a monthly payment plan that often lasts around 5 years. You will pay them one fixed amount and then they will be responsible for paying each of your creditors seperately on your behalf. They will offer you ongoing support throughout the program on an as need basis.

If the consumer credit counseling company is non profit, the fee for their service is capped by the government. Typically there is a modest set up fee over $100 and then a monthly management fee that is probably less than your electricity bill.

For many people the savings on the interest rates & fees, the advice, and the coaching they provide make this a valuable service with debt amounts that are more than they are comfortable with. Without these consumer credit counseling debt management programs, many people would never be able to ge their debt under control due to the speed with which the payments grow due to the rising interest rates.

So what do they do?

They consolidate your debts into one payment and they are often able to lower the interest rates and fees you now pay. They act as an intermediary between you and the credit card companies who, once they know you are in a credit consolidation counseling program, are more likely to work with you to help prevent further rapid debt accumulation.

You may refer to my posts about debt management companies here to learn more about credit consolidation counseling.

Also, you may request more information about my Top Debt Management Companies here and learn more about the information and consultations they can provide you.