1. Credit Counseling and Debt Management Plans

One of the most effective and accessible relief options is a debt management plan (DMP) offered through a nonprofit credit-counseling agency. These agencies work directly with creditors to lower interest rates, reduce fees, and consolidate multiple balances into one affordable monthly payment.

How It Works

• You work with a certified counselor to review finances and create a budget.
• Multiple credit card bills are combined into one reduced payment.
• Interest rates may drop drastically (sometimes from 25% APR down to 8% or less).
• Plans typically last 3–5 years.

Ideal For

Seniors living on Social Security or pension income who want structure and lower payments without taking out a loan.

Where to Apply

• National Foundation for Credit Counseling (NFCC)
• Financial Counseling Association of America (FCAA)