Debt Consolidation
Combine eligible debts into one structured monthly payment—with support from a certified, nonprofit counselor.
Consolidate credit cards, collections, payday loans, and medical bills into one payment.
No new loan or balance transfer required.
May reduce interest and waive certain fees through a Debt Management Plan.
No hard credit pull for counseling; no obligation.
Explore Your Debt Consolidation Options
Get your free, no-obligation consultation.
We Work With Major Credit Card Companies (and Many More)
This is just a sample of the many creditors we work with to help California residents reduce debt through a nonprofit Debt Management Plan.
Start with a clear plan that fits your life
If juggling cards, due dates, and late fees is wearing you down, debt consolidation can bring everything into one manageable payment. You can use a new loan, or choose a nonprofit path that organizes your current accounts without borrowing more.
Money Fit focuses on consolidation without a loan through a Debt Management Plan (DMP). A certified counselor reviews your budget, contacts participating creditors, and proposes lower interest and waived fees. You make one payment; we disburse to creditors per the proposals.
Nonprofit DMP
- No new loan required
- Proposed lower rates and fewer fees
- One payment, structured payoff
Consolidation Loan
- New credit pays off old balances
- Rate depends on credit and terms
- Simplifies payments if approved
Do-it-Yourself
- Snowball or avalanche methods
- No third-party program fees
- Requires steady discipline
What to expect with a nonprofit plan
Potential benefits
- Average savings of $238* per month in interest and fees
- Typical payoff horizon of 3–5 years with consistent payments
- Less stress from calls, fees, and scattered due dates
*Average savings for clients enrolled as of July 2024. Individual results vary based on balances, creditor participation, and payment consistency.
Not sure which path fits you best? Review your options with a counselor first, then decide if a DMP, a loan, or a self-directed plan makes the most sense.
Debt Consolidation by State
Choose your state to see localized options, eligibility details, and how a nonprofit Debt Management Plan can help where you live.
Debt Consolidation FAQs
Straightforward answers to common questions about consolidating debt through a nonprofit credit counseling approach.
What is debt consolidation?
Debt consolidation means combining multiple unsecured debts (like credit cards, collections, and some medical or payday balances) into a single monthly payment. You can do this with a new loan, a balance transfer, or through a nonprofit Debt Management Plan (DMP) that organizes your existing accounts into one payment without taking out new credit.
How is a Debt Management Plan different from a consolidation loan?
- Consolidation loan: You borrow new money to pay off old balances; rate and approval depend on credit and underwriting.
- Debt Management Plan (DMP): No new loan. A counselor proposes reduced interest and waived fees with your current creditors. You make one payment to the agency; the agency pays creditors per the agreed proposals.
Will debt consolidation affect my credit?
It can, in different ways:
- Loan or balance transfer: A hard inquiry and a new account may cause a short-term dip; paying down balances can help over time.
- DMP: Enrolled accounts are typically closed, which can affect utilization and account age. On-time payments through the plan often help overall stability. Results vary by profile and payment consistency.
Do I need good credit to qualify?
For a loan, you’ll need to meet the lender’s credit and income criteria. For a DMP, most consumers can be evaluated regardless of credit score. Counseling itself does not require a hard credit pull.
What kinds of debts can be included?
Commonly included:
- Credit cards and store cards
- Collections and charged-off credit card accounts
- Medical bills (varies by provider)
- Some payday and installment loans
Not typically included: mortgages, federal student loans, auto loans, or secured debts. Availability can vary by creditor and state—check your state page above for details.
How long does a Debt Management Plan take?
Most DMPs are structured for 36 to 60 months, depending on your balances and creditor terms. Paying extra can shorten the timeline.
Are there fees?
Nonprofit agencies may charge modest setup and monthly fees permitted by state law. Fees are disclosed in advance and should be outweighed by potential interest reductions and fee waivers negotiated with creditors.
Will my credit cards be closed?
For a DMP, creditors generally require enrolled accounts to be closed to new charges during the plan. This helps prevent balances from growing while you repay.
Is debt consolidation the same as debt settlement?
No. A DMP aims to repay your balances in full under reduced interest and waived fees when approved by creditors. Debt settlement involves negotiating to pay less than the full balance and can have different credit, tax, and risk considerations.
Can I keep using my credit cards?
Enrolled cards in a DMP are closed to new charges. You can typically keep cards that are not included, but most consumers pause new charging to focus on payoff.
What happens if I miss a payment?
Missing a payment can cause creditor concessions (like reduced rates) to be paused or revoked. If you anticipate an issue, contact the agency before the due date to review options.
Does counseling require a hard credit pull?
No. Nonprofit credit counseling typically collects your creditor statements and reviews your budget without a hard inquiry. If you apply for a new loan elsewhere, the lender may run a hard pull.
How do I get started?
Select your state above to see local details and begin a confidential counseling session. You’ll review your budget, debts, and goals, then decide on next steps—whether that’s a DMP, self-directed payoff strategy, or other options.
Are results guaranteed?
No. Creditor participation and terms are at each creditor’s discretion, and outcomes depend on your balances, payments, and circumstances. A counselor will explain likely scenarios before you enroll.
Money Fit Insights
Get expert advice, practical tips, and in-depth analysis to achieve your financial goals.
