Pros and Cons Explained
Pros
- Multiple certifications and accreditations: InCharge Debt Solutions is certified and accredited by several organizations and government agencies, meaning it meets rigorous performance and financial standards. It’s accredited or certified by the National Foundation for Credit Counseling, Financial Counseling Association of America, U.S. Department of Housing and Urban Development, and others.
- Good customer reviews: Credit counseling agencies and debt relief companies often have poor reviews, so InCharge Debt Solutions' excellent ratings on sites like Trustpilot, where it has 4.7/5 stars, are an attractive feature.
- Free credit counseling in 50 states: You can take advantage of free credit counseling online or over the phone regardless of where you live, unlike some companies that have state limitations.
Cons
- Face-to-face credit counseling only available in Central Florida: Although counseling is available over the phone to residents all over the country, those who want in-person help will find InCharge Debt Solutions to be quite limited.
- Limited counseling options for student loan borrowers: Whereas some credit counseling agencies provide educational tools and programs for student loan borrowers, InCharge Debt Solutions does not. This could be important for many potential clients, considering that 51% of bachelor's degree recipients graduated with student loan debt in 2021 and 2022—the latest available data.
How InCharge Debt Solutions Works
As a nonprofit credit counseling agency, InCharge Debt Solutions provides several free or low-cost services. It offers general educational resources and workshops, but it also provides debt management plans (DMPs) for those who are struggling to deal with their debt.
When you contact InCharge Debt Solutions, you'll get a free consultation with a credit counselor. The counselor will review your finances and determine whether you're a candidate for a DMP.
If you enroll in a DMP, the agency negotiates with your creditors to potentially lower your rates and fees. According to InCharge Debt Solutions' 2023 annual report, the annual percentage rate (APR) on credit card debt for clients enrolled in a DMP was reduced to an average of 8.4%.
Instead of paying your creditors directly, you make one monthly payment to the credit counseling agency, which will then disburse the money to your creditors on your behalf until your debts are paid off.
Accreditations
InCharge Debt Solutions is a member of the following organizations:
- National Foundation for Credit Counseling
- Financial Counseling Association of America
It's also accredited or certified by the following organizations and agencies:
- Better Business Bureau (BBB)
- Executive Office for United States Trustees
- U.S. Department of Housing and Urban Development
How to Enroll With InCharge Debt Solutions
Follow these basic steps to enroll in a DMP with InCharge Debt Solutions.
- Provide personal information: Use InCharge’s online tool to enter details about your debt and your personal information. When you submit the form, it will prompt you to consent to be contacted via phone by a credit counselor. Alternatively, you can call InCharge Debt Solutions directly at (800) 565-8953.
- Set up a credit counseling session: The counselor will contact you to set up a time for a free credit consultation and review of your finances.
- Consider how a debt management plan may help: If you're a candidate for a DMP, the counselor will explain the costs and structure to you. There’s a one-time setup fee and an ongoing monthly fee, but fees may be reduced for clients facing financial hardship. You'll decide which accounts to include in the DMP and calculate what your monthly DMP payment will be to pay your creditors.
- Agree to the debt management plan terms: If the terms are acceptable, you’ll sign the agreement. Your counselor will provide you with account information for the InCharge Debt Solutions client portal so you can make payments and track your progress online.
You typically have to close any credit card accounts included in a DMP. If you open a new card while in a DMP, there may be consequences: The DMP may be canceled, and/or creditors may revert your rates to a higher APR.
Types of Debt Addressed
Debt management plans typically include only unsecured debt. Secured debts, such as mortgages and auto loans, are excluded. You can include the following types of debt in your DMP:
- Credit cards
- Unsecured personal loans
- Medical bills
Your credit counselor will contact your creditors to potentially lower the interest rates on your outstanding debt, helping you save money.
Counseling Services Offered by InCharge Debt Solutions
InCharge Debt Solutions offers several other services along with DMPs.
Credit Counseling
If you're struggling to manage your debt, you can take advantage of free credit counseling sessions to identify your options. Depending on your situation, you may benefit from a review of your monthly budget, or a counselor may recommend debt consolidation, a DMP, or bankruptcy.
Bankruptcy Counseling
InCharge Debt Solutions is an approved provider of pre-filing and pre-discharge bankruptcy classes for Chapter 7 and Chapter 13 bankruptcies. You can take online classes and finish the necessary requirements with a personal counseling session so you can file for bankruptcy.
Eviction Prevention Counseling
With eviction prevention counseling, you can talk with a counselor to find out if there are any government programs available that can help you afford your rent. Alternatively, your counselor can work with you to develop a plan to negotiate with your landlord.
Foreclosure Prevention Counseling
InCharge Debt Solutions is a HUD-approved agency for foreclosure prevention counseling. If you risk losing your home because you're behind on your mortgage, InCharge Debt Solutions can help you by identifying refinance opportunities or locating nonprofit organizations in your area that provide financial assistance.
Homebuyer Counseling
InCharge Debt Solutions offers the following homebuyer programs:
- HomeTrek: HomeTrek is an online, HUD-approved homebuyer education course. Depending on where you live, a HomeTrek certificate of completion (or similar proof of homebuyer education) may be required to qualify for state down payment assistance programs.
- Pre-purchase housing counseling: An InCharge housing counselor will review your finances and your monthly budget to determine if you're ready to become a homeowner, and to calculate how much you can afford to spend on a new home.
- Homebuyer workshops: If you live in the Central Florida area, you can attend free homebuyer education workshops in person and learn about the homebuying and mortgage application processes. After completing the workshops, you'll receive a certificate that can be used toward the Neighborhood Stabilization Program (NSP) or First-Time Home Buyers Down Payment Assistance programs.
Expected Cost
Like other credit counseling services, InCharge Debt Solutions charges an enrollment fee and a monthly fee for debt management plans. The enrollment fee ranges from $50 to $75. InCharge doesn’t disclose the range of monthly fees, but it says the average monthly fee is around $30.
Fees vary by state and household income. Clients facing financial hardship may qualify for reduced or waived fees.
Expected Relief Amount
The amount you can save by entering into a DMP depends on your existing balances and interest rates, and the willingness of your creditors to lower their APRs and fees. According to InCharge Debt Solutions, the average credit card rate for clients that enter into a DMP is 8.4%—that’s quite a bit lower than the average credit card APR, which was over 21% in Q4 of 2023.
Unlike debt settlement, your debt will not be forgiven under a debt management plan. You may benefit from lower interest rates and fees, but you’ll be expected to fully pay off the outstanding debt.
A 2022 study by researchers at the John Glenn College of Public Affairs at Ohio State University found that DMPs resulted in higher credit scores and lower levels of credit card debt.
Expected Time to Complete the Program
Like the amount of relief you can expect, the time it takes to complete a DMP depends on the amount of debt you have, the amount you can dedicate to repayment, and your creditors’ willingness to negotiate. The process will go faster if you have less debt, more money to repay it with, and lower interest rates.
In general, InCharge Debt Solutions says clients can complete a DMP within three to five years.
Additional Services
InCharge Debt Solutions offers educational tools, including videos, worksheets, articles, and financial calculators, to help you make informed decisions. You can also download ebooks and financial games to build your financial literacy.
Client Dashboard
As a client of InCharge Debt Solutions, you have access to the agency's online portal. The portal allows you to make payments toward your DMP, view your balances, and see your payment history.
Customer Service
Customer support is available via phone, or if you live in Central Florida, in person.
| Method | Contact Details | Availability |
|---|---|---|
| Telephone (general inquiries and help with debt) | (800) 565-8953 (866) 721-3925 | Monday–Friday: 9 a.m.–10 p.m. ET Saturday: 9 a.m.–6 p.m. ET |
| Telephone (housing counseling) | (877) 712-6040 | Monday–Friday: 9 a.m.–10 p.m. ET |
| Telephone (bankruptcy counseling) | (866) 729-0049 | Monday–Friday: 9 a.m.–10 p.m. ET |
| Office | 5750 Major Blvd, Suite 300 Orlando, FL 32819 | By appointment |
Customer Satisfaction and Reviews
InCharge Debt Solutions has a good reputation for customer service and client satisfaction. On Trustpilot, it has a rating of 4.7 out of 5 based on over 2,000 reviews, with reviews frequently complimenting the agency's helpfulness and responsiveness.
InCharge Debt Solutions was also awarded the National Business Research Institute (NBRI) Circle of Excellence, an award that recognizes companies that meet the NBRI's standards for employee and customer experience.
InCharge Debt Solutions vs. Apprisen vs. Money Management International
| InCharge Debt Solutions | Apprisen | Money Management International | |
|---|---|---|---|
| Services Offered | Credit counseling, debt management plans, bankruptcy counseling, homebuyer education courses | Credit counseling, debt management plans, student loan counseling, bankruptcy counseling, and more | Credit counseling, debt management plans, housing counseling, bankruptcy counseling, student loan counseling, debt settlement, military member support, natural disaster victim support |
| DMP Enrollment Fee | $50–$75 | $0–$45 | $0–$75; average $33 |
| DMP Monthly Fee | Average of $30 | $0–$45 | $0–$59; average $25 |
| Minimum Debt Required | $0 | $0 | $0 |
| Accreditations | NFCC, FCAA, HUD, EOUST, BBB | NFCC, COA, HUD, EOUST | NFCC, COA, HUD, BBB |
| Year Established | 1997 | 1955 | 1958 |
If you have high-interest credit card debt, entering into a debt management plan with Incharge Debt Solutions could help you conquer your debt and save money. But it makes sense to explore several debt relief companies before making a decision.
- Best Credit Counseling Companies
- Best Debt Relief Companies
Is Credit Counseling Worth It?
Entering into a DMP can help you save money and pay off debt faster, but you have to sacrifice your credit cards and stick to a budget. Plus, there may be setup and monthly fees. Whether credit counseling is worth the time and expense depends on several factors:
- Your type of debt: Credit counseling is best for those with high-interest unsecured debt, such as credit card balances. If you have other forms of debt, such as secured loans, it won’t be helpful since you can't include secured debt in a DMP.
- Your current interest rates: If you have credit card debt with rates in the double digits, a DMP could be well worth it. According to InCharge Debt Solutions, the average APR for clients in a DMP is about 8%, so you could save a substantial amount of money.
- How much you can dedicate to your debt: A DMP is only effective if you can keep up with the monthly payments. If your budget is too tight or your debt too high, a DMP may not work for you, and you may need to explore other options like bankruptcy.
Keep in mind: There is no guarantee that your creditors will agree to reduce their rates or fees, so your creditors' willingness to negotiate plays a big role in how effective a DMP will be.
Is Debt Relief Through Credit Counseling Taxable?
With a DMP, the credit counselor will work with your creditors to hopefully reduce your interest rates and fees. If they are successful, there's good news: The money you save from reduced rates and waived fees isn’t taxable as income.
DMPs are very different from debt settlement. With debt settlement, the creditor agrees to settle the debt for less than you owe, and the forgiven or discharged amount is generally taxable as income.
The Bottom Line
InCharge Debt Solutions' debt management plans can make sense for those who are struggling with significant credit card balances, unsecured personal loans, and/or medical bills. InCharge Debt Solutions may be able to negotiate lower rates and fees, helping you pay off your debt in three to five years. However, those with unmanageable secured debt, including auto loans, will likely need to explore other options to manage their debt, such as refinancing.
Frequently Asked Questions (FAQs)
Is InCharge Debt Solutions Legit?
InCharge Debt Solutions is a legitimate credit counseling agency. It's a 501(c)(3) nonprofit organization, and it's a member of the National Foundation for Credit Counseling (NFCC) and the Financial Counseling Association of America (FCAA).
Who Owns InCharge Debt Solutions?
Loretta Roney, president and chief executive officer, leads InCharge Debt Solutions, which is a nonprofit. However, the organization also has a board of trustees; its members are elected to two-year terms of office.
Does InCharge Debt Solutions Hurt Your Credit?
Entering into a debt management plan with InCharge Debt Solutions (or any credit counseling agency) can affect your credit because you typically have to close your credit card accounts. Closing your accounts decreases your available credit and may increase your overall credit utilization, which can damage your credit score.
However, as you make your DMP payments and pay down your debt, your credit will likely improve over time, all other things being equal.
Is InCharge Debt Solutions a Nonprofit?
Yes, InCharge Debt Solutions is a nonprofit company. Charity Navigator, an organization that evaluates the financial records and results of nonprofit groups, gave InCharge Debt Solutions a score of 96%, making it a "Four-Star Charity." The four-star distinction, according to Charity Navigator, means donors can contribute money with confidence that the nonprofit is legitimate and transparent about its operations.
How We Determine the Best Credit Counseling Services
To determine the best credit counseling services, we reviewed various databases, competitive analyses, consumer behavior, and more, ultimately narrowing down the list to 40 companies, including 17 companies that offer credit counseling services that include debt management plans. We developed a quantitative model where we identified 53 important criteria across five categories. We weighted each category as follows for this article:
- Costs and fees: 37.00%
- Availability: 19.50%
- Reputation and stability: 18.50%
- Customer experience: 9.00%
- Services: 16.00%
We then gathered data for the 53 criteria directly from companies via websites, media contacts, and existing partnerships. Data were collected between Oct. 19, 2023, and Dec. 18, 2023. This resulted in over 2,000 data points in our rubric, which we used to score and determine the best debt relief companies (including debt settlement and credit counseling services) for people looking to manage and get out of debt.
To learn more about our process for finding the best debt relief companies, read our full methodology.
