What In Charge Financial Does

In Charge Financial is a nonprofit credit counseling organization that helps people manage debt through education, budget planning, and debt management plans — including consolidation strategies. They do not lend money themselves. Instead, they work with you to understand your debt situation, teach you how to handle it, and sometimes negotiate with your creditors to lower interest rates or monthly payments as part of a structured repayment plan.

The organization operates in all 50 states and has been in business since 1987. They offer phone and online counseling, which means you do not have to visit an office in person. Their counselors are certified by the National Foundation for Credit Counseling (NFCC), a standard that requires training and ongoing education in personal finance and debt management.

If you arrived here from the consolidation loans section, you should know that In Charge offers an alternative path: instead of taking out a new loan to pay off existing debts, they help you restructure what you already owe through negotiation and a formal payment plan. This approach does not require you to borrow new money or pass a credit check.

Key Takeaways

  • In Charge Financial is a nonprofit that offers credit counseling and debt management plans, not loans, and charges little to nothing for initial counseling sessions.
  • A debt management plan through In Charge involves negotiating with creditors to reduce interest rates or monthly payments, then making one payment to In Charge each month that they distribute to your creditors.
  • The organization is accredited by the NFCC and operates nationwide by phone and online, so you can work with them regardless of where you live.
  • Using a debt management plan will show on your credit report and may affect your credit score in the short term, though it typically improves over time as you pay down balances.

How In Charge's Debt Management Plans Work

When you contact In Charge, a counselor will review your income, expenses, and all your debts — credit cards, medical bills, personal loans, and so on. They will ask about your situation: job stability, recent hardships, whether you have savings. This conversation is free and has no obligation attached.

If a debt management plan makes sense for your situation, In Charge will contact your creditors on your behalf. They negotiate to see whether creditors will accept a lower interest rate, waive fees, or reduce your monthly payment. Creditors are not required to agree, but many do because they prefer a structured repayment plan to the risk that you will stop paying altogether.

Once creditors agree, you make one monthly payment to In Charge, and they distribute the money to each creditor according to the plan. You stop making individual payments to those creditors. The plan typically lasts three to five years, depending on how much you owe and what the creditors agree to.

Costs and Fees

In Charge charges nothing for the initial credit counseling session. If you decide to set up a debt management plan, they charge a setup fee and a monthly service fee. The setup fee ranges from zero to several hundred dollars depending on your situation and which In Charge office handles your case. Monthly fees typically range from $25 to $50, though this varies.

Because In Charge is a nonprofit, any fees they collect go back into the organization to pay counselors and cover operating costs — they do not profit from your plan. You can ask about fee waivers or reductions based on your income when you speak with a counselor. Some people with very low income pay nothing.

Compare this to a consolidation loan, where you would pay interest to a lender over the life of the loan. With In Charge, you are paying a flat fee for the service of negotiation and payment distribution, but you are not borrowing new money and paying interest on it.

How a Debt Management Plan Affects Your Credit

When you enroll in a debt management plan, the accounts included in the plan will show on your credit report as "in a debt management plan" or "account management plan." This notation will be visible to anyone who pulls your credit report, including future lenders.

Your credit score may drop in the short term — typically by 20 to 100 points — because you are no longer making payments directly to creditors and because the accounts are flagged as being managed through a third party. However, as you make on-time payments through the plan and your balances decrease, your score usually recovers and improves over time.

The key difference from a consolidation loan: a debt management plan does not create a new account or new debt. You are restructuring existing debt. A consolidation loan creates a new loan account, which can also affect your score initially but in a different way — through a hard inquiry and a new account on your report.

When In Charge Makes Sense Versus a Consolidation Loan

A debt management plan through In Charge works best if you have multiple unsecured debts (credit cards, medical bills, personal loans) and your income is stable enough to make a monthly payment, but you cannot pay the full balance quickly. You do not need good credit to work with them, and you do not have to may have access to for a loan.

A consolidation loan makes more sense if you want a single new loan with a fixed term and fixed payment, and you have decent enough credit to get approved at a reasonable rate. A loan is also faster — you get the money and pay off creditors when ready, whereas a debt management plan takes time to negotiate and set up.

If you have secured debt (a car loan or mortgage), In Charge cannot include those in a debt management plan. You would need to handle those separately or explore other options. If you have very high debt relative to your income, a counselor might recommend bankruptcy information or other paths instead of a debt management plan.

How to Contact In Charge Financial

You can reach In Charge by phone at 1-800-338-2227 or through their website at incharge.org. They offer counseling by phone and online, and you can schedule an appointment at a time that works for you. The initial counseling session is free and typically lasts 30 to 60 minutes.

When you call, have your debts listed and your monthly income and expenses ready. The counselor will ask about your situation and explain whether a debt management plan is a reasonable option for you. If it is not, they will discuss other paths — budgeting help, bankruptcy information, or other resources.

In Charge is accredited by the NFCC, which means they meet standards for counselor training, client confidentiality, and ethical practice. You can verify their accreditation on the NFCC website if you want to confirm before you call.

Alternatives to In Charge's Debt Management Plans

Other nonprofit credit counseling agencies offer similar debt management plans. The NFCC website lists accredited agencies in your area. Some credit unions also offer debt counseling to members. If you want to explore consolidation loans instead, you can contact banks, credit unions, or online lenders — though you will need to meet their credit and income requirements.

If your debt is very high or your income is very low, bankruptcy may be an option worth discussing with a lawyer. In Charge can provide information about bankruptcy, but they cannot represent you in court. A bankruptcy attorney can explain whether Chapter 7 or Chapter 13 bankruptcy might be better than a debt management plan in your specific situation.

You can also try negotiating with creditors on your own, without using an agency. Some creditors will work with you directly if you call and explain your situation. This approach is free but requires time and persistence, and creditors may be less willing to negotiate without a third party involved.

Frequently Asked Questions

Will enrolling in a debt management plan hurt my credit score?

Your score may drop initially because the accounts will show as being managed through a third party and you will stop making direct payments to creditors. However, as you make on-time payments and balances decrease, your score typically recovers and improves over time. The long-term effect is usually positive.

Can I still use my credit cards while in a debt management plan?

Creditors typically require you to stop using the cards included in the plan. Some counselors recommend closing the accounts after they are paid off to avoid the temptation to run up new balances. You may be able to keep one card outside the plan for emergencies, but discuss this with your counselor first.

What happens if I cannot make a payment to In Charge?

Contact In Charge when ready if you know you will miss a payment. They may be able to work with you to adjust the plan, pause it temporarily, or find another solution. If you stop paying without communicating, creditors may withdraw from the plan and resume collection efforts, which could damage your credit further.

How long does it take to set up a debt management plan?

The initial counseling session is usually same-day or within a few days. Negotiating with creditors typically takes two to four weeks. Once creditors agree, your plan begins and you start making payments to In Charge. The entire process from first call to first payment usually takes four to six weeks.

Is In Charge Financial the same as a debt consolidation company?

No. In Charge is a nonprofit credit counseling agency that negotiates with creditors and helps you manage existing debt. A debt consolidation company typically lends you money to pay off your debts, creating a new loan. In Charge does not lend money — they restructure what you already owe.