Nonprofit credit counseling agencies offer free consultations and can set up debt-management plans that consolidate unsecured debts into a single monthly payment without taking out a loan. DMPs may reduce interest and fees when creditors agree, but results and timelines vary. Verify the agency's nonprofit status, fee structure, and which creditors will participate, and get all promises in writing.

What nonprofit credit counseling does

Nonprofit credit counseling agencies help consumers organize unsecured debt (credit cards, store cards, personal loans) and create a repayment plan. Many agencies offer a free initial consultation to review your accounts and recommend options, including a debt-management plan (DMP) that combines multiple creditor payments into a single monthly payment.

What a Debt-Management Plan (DMP) typically provides

A DMP is not a loan. Instead, the counseling agency negotiates with your unsecured creditors for lower interest rates or waived fees while you make one consolidated monthly deposit to the agency. The agency forwards payments to creditors on your behalf.

Common outcomes include lower APRs, reduced or waived late fees, and a single monthly payment that may be easier to track. Results vary by creditor and by individual account; lower monthly obligations are possible but not guaranteed.

How to prepare for counseling

Bring accurate, recent statements or a list of each creditor, account number, outstanding balance, and your current minimum payment. Accurate information speeds assessment and enrollment.

Timeframe and access

Initial intake and budgeting advice can often be completed in a single session or online form. Enrollment in a DMP and creditor agreements can take weeks, not hours, because each creditor must agree to new terms.

Some agencies provide online self-service tools 24/7; live counselors are usually available during business hours. Verify the agency's posted hours before assuming round-the-clock support.

What to watch for and verify

  • Confirm the agency is a nonprofit and ask for its IRS status or membership in a national association such as the National Foundation for Credit Counseling (NFCC).
  • Ask how the agency charges for services. Reputable nonprofit counselors may charge small monthly DMP fees, but they should disclose fees upfront.
  • Check whether specific promises - such as a guaranteed percentage reduction in payments, one-hour enrollment, or 24/7 counselor availability - are documented in writing.
  • Use resources from the Consumer Financial Protection Bureau (CFPB) to compare providers and identify red flags.

Will a DMP stop collectors or prevent bankruptcy?

A DMP can reduce the likelihood of bankruptcy for some people by making debt more manageable, and it can reduce collection calls if creditors accept the DMP terms. However, it is not a guaranteed shield against lawsuits or repossession, and it does not erase negative credit history immediately.

Final steps

Before enrolling, get any DMP agreement in writing, review how funds are handled, and confirm which creditors will participate. If an agency's claims sound too good to be true (fixed guaranteed savings, instant consolidation in under an hour, or unconditional 24/7 counselor access), ask for documentation and compare with other nonprofit counselors.

  1. Verify whether an organization named "Amend Credit Counseling" or spelled "Ammend" currently exists and its nonprofit status.
  2. Confirm average reported reductions in monthly payments (e.g., 20-50%) for DMPs from reliable sources such as NFCC or CFPB before citing specific percentages.
  3. Confirm claims that enrollment or consolidation can be completed "in one hour or less" for specific agencies, and whether any credit counseling providers advertise 24/7 live counselor availability.

FAQs about Ammend Credit Counseling

Is a debt-management plan the same as a loan?
No. A DMP is an agreement negotiated with creditors to adjust payment terms. You still repay your balances; the agency usually forwards a single monthly payment to creditors.
Will enrolling in a DMP stop collection calls?
Creditors who accept the DMP often reduce or stop collection calls, but this depends on each creditor's policies and when they agree to the plan.
How long does it take to enroll in a DMP?
Initial counseling can be completed quickly, but full enrollment and creditor agreements typically take several weeks rather than hours.
Do nonprofit credit counselors charge fees?
Reputable nonprofits disclose any fees up front. There may be a modest setup fee or monthly maintenance fee for a DMP, but policies vary by agency.
Can a DMP prevent bankruptcy?
A DMP can help many people avoid bankruptcy by making debt more manageable, but it is not a guarantee and may not address secured debts or certain legal actions.