What In Charge Debt Solutions Does
In Charge Debt Solutions is a nonprofit credit counseling agency that offers debt management plans (DMPs) as one way to handle multiple debts. If you arrive here from consolidation loans, you should know that a DMP is different: instead of taking out a new loan, In Charge negotiates with your creditors to lower your interest rates and monthly payments, then you make one payment to In Charge each month, and they distribute it to your creditors on your behalf.
In Charge has been operating since 1989 and is accredited by the National Foundation for Credit Counseling (NFCC). They do not lend money, sell products, or charge upfront fees. Their revenue comes from creditors who contribute to the nonprofit, which means they have a financial relationship with the lenders you owe—something to keep in mind as you evaluate whether their information serves your situation.
A debt management plan through In Charge typically takes three to five years to complete. During that time, your credit score will likely drop initially (because you are not paying accounts in full), but it may improve as you make on-time payments and reduce your overall debt balance. You cannot open new credit accounts while enrolled, and some creditors may close your accounts or refuse to participate in the plan.
Key Takeaways
- In Charge negotiates with creditors to reduce interest rates and monthly payments, then collects one payment from you and distributes it to each creditor.
- There is no upfront fee, but In Charge does receive money from creditors, so their incentive is not purely on your side.
- A debt management plan typically lasts three to five years and requires you to stop using the accounts enrolled in the plan.
- Your credit score will drop when you enroll but may recover as you make consistent payments over time.
- In Charge offers free counseling sessions before you commit to a plan, so you can understand the terms and alternatives.
How to Contact In Charge and Get a Counseling Session
You can reach In Charge by phone at 1-800-338-2227 or through their website at incharge.org. They offer free initial counseling sessions, either by phone or in person at one of their offices (they have locations in Florida and other states, though most counseling is done remotely). The session typically lasts 60 minutes and covers your income, expenses, debts, and whether a debt management plan makes sense for your situation.
During this session, a certified credit counselor will review your budget, explain how a DMP works, and discuss alternatives such as bankruptcy, debt consolidation loans, or negotiating directly with creditors yourself. They will not pressure you to enroll. If you decide to move forward, they will create a customized plan and present it to your creditors for approval.
Bring documentation to your counseling session: recent pay stubs, a list of all debts with current balances and interest rates, and any recent creditor letters or collection notices. This helps the counselor give you accurate information about what creditors might accept.
What Happens After You Enroll in a Debt Management Plan
Once you enroll, In Charge contacts each creditor on your plan to negotiate new terms. Not all creditors will agree—some may refuse to participate or may require you to be past due before they will negotiate. Creditors who do participate typically reduce your interest rate and may waive late fees or reduce your monthly payment.
You then make one monthly payment to In Charge, usually between the 1st and 15th of each month. In Charge deposits that money into a trust account and distributes it to creditors according to the plan. You will receive a monthly statement showing what was paid to each creditor. The plan is designed so that you pay off all enrolled debts within three to five years, depending on how much you owe and what creditors agree to.
While you are in the plan, you must not take on new debt or use the enrolled accounts. If you miss a payment to In Charge, creditors may withdraw from the plan and resume collection efforts. Some creditors may also close your accounts or report the plan itself to credit bureaus, which affects your credit score.
How a Debt Management Plan Compares to a Consolidation Loan
A consolidation loan is a single new loan that pays off multiple debts at once. You then owe the lender instead of your original creditors. A debt management plan, by contrast, does not create a new loan—your original creditors remain your creditors, but the terms change.
| Feature | Consolidation Loan | In Charge Debt Management Plan |
|---|---|---|
| New loan required | Yes | No |
| Upfront fees | Often yes (origination, process) | No |
| Credit score impact | Hard inquiry and new account lower score initially; may improve faster if you may have access to for a low rate | Enrollment lowers score; recovery is slower |
| Creditor approval needed | Lender approval only | Each creditor must agree |
| Can use enrolled accounts | Yes, after payoff | No, accounts must stay closed |
| Time to pay off | Depends on loan term (often 3–7 years) | Typically 3–5 years |
A consolidation loan works better if you have decent credit and can may have access to for a lower interest rate than you currently pay. A debt management plan works better if your credit is already damaged, you cannot may have access to for a loan, or you want to avoid taking on new debt.
Costs and Fees Associated with In Charge
In Charge does not charge an upfront fee to set up a debt management plan. However, they do charge a monthly service fee once you are enrolled, typically between $25 and $50 per month depending on your plan and state. Some states cap this fee by law; others do not. Ask about the exact fee before you enroll.
In Charge also receives contributions from creditors—money paid by the lenders whose debts are in your plan. This creates a potential conflict of interest: In Charge's revenue depends partly on keeping creditors happy, which could theoretically influence their information. The organization discloses this on their website, but it is worth understanding before you commit.
You will also lose money if you withdraw from the plan early. Some creditors may require you to pay back any interest reductions or fee waivers they granted. Read the terms of your specific plan before signing.
Red Flags and When In Charge May Not Be the Right Choice
A debt management plan is not right for everyone. If you are behind on payments and facing when ready collection or lawsuit, a plan may not stop those actions—creditors can still sue even while negotiating. If you have only one or two debts, the monthly fee may not be worth it; you might negotiate directly with creditors or pursue a consolidation loan instead.
If you have significant unsecured debt (credit cards, medical bills, personal loans) and little income, bankruptcy might wipe out more debt faster than a three-to-five-year plan. If you have secured debt (a car loan or mortgage), a DMP does not address those—you still owe the full amount to the lender.
Be cautious of any debt relief company that guarantees results, charges upfront fees, or promises to remove negative items from your credit report. In Charge does not do these things, but many for-profit debt settlement companies do. In Charge's nonprofit status and NFCC accreditation are signs of legitimacy, but they do not mean a DMP is the right tool for your situation.
Frequently Asked Questions
Will a debt management plan hurt my credit score?
Yes, initially. Enrollment typically lowers your score by 50 to 100 points because creditors report the plan to bureaus and you stop making full payments on enrolled accounts. However, as you make on-time payments over months and years, your score usually recovers. By the end of the plan, your score may be higher than when you started because your debt-to-income ratio has improved.
Can I still use my credit cards while in a debt management plan?
No. Accounts enrolled in the plan must stay closed or unused. Using them defeats the purpose of the plan and may cause creditors to withdraw. You can use credit cards not enrolled in the plan, but most counselors recommend avoiding new debt entirely while paying down existing balances.
What happens if a creditor refuses to participate in my plan?
If a creditor will not negotiate, you still owe them the full amount at the original interest rate. You can continue paying them separately, try to negotiate directly, or let the account go to collections. In Charge will tell you upfront which creditors are unlikely to participate based on your situation.
How long does it take to see results from a debt management plan?
You will see your monthly payment drop when ready once the plan is approved and creditors agree to lower rates. However, paying off the full debt takes three to five years. Some people see credit score improvement within 12 to 18 months of consistent on-time payments, though this varies by individual circumstances.
Is In Charge the same as a debt settlement company?
No. In Charge is a nonprofit credit counseling agency that negotiates with creditors to reduce interest rates and create a repayment plan. Debt settlement companies are usually for-profit and try to negotiate a lump-sum payoff for less than you owe, which damages your credit more severely and often charges high upfront fees. In Charge's approach is less aggressive but also less risky.