The first thing is to find yourself a legitimate credit counseling agency. You can do this by reading our post, “how to find a legitimate credit counseling service”.
Even though they call themselves a non-profit credit counseling agency, getting yourself enrolled in a debt management plan may have its costs. They may take your first monthly payment as a fee or state a fixed fee for the services rendered. Many credit counseling services also make an income from what is known as a ‘fair share’. Fair Share is what they get from the creditors for the money that they get to recover through their services every time that a consumer joins a debt management plan.
Many credit counseling services offer credit education and management advice for free They might charge you a minimal fee for making a budget plan for you that will help you pay off your monthly debts. This could cost your anywhere from $5-$15.
In case of debt management it could be as high as 20% of the total monthly installment. Anything higher than that and you should look elsewhere.