In Charge Debt Solutions is a nonprofit credit counseling agency, not a consolidation loan lender

In Charge Debt Solutions does not make loans. Instead, it is a nonprofit organization that helps people manage debt through counseling and a debt management plan — a structured repayment arrangement where the agency negotiates with your creditors on your behalf. If you arrived here looking for a consolidation loan, this is a different path: you keep your original debts but reorganize how you pay them, usually with lower interest rates and a single monthly payment to In Charge.

The organization is accredited by the National Foundation for Credit Counseling (NFCC) and has been operating since 1989. It operates in all 50 states and offers both phone and online counseling. The initial credit counseling session is free; a debt management plan carries a setup fee (typically $50 to $75) and a monthly service fee (usually $25 to $50, though this varies by state and your situation).

Key Takeaways

  • In Charge negotiates directly with credit card companies and other unsecured creditors to lower your interest rates, not by lending you money but by restructuring your existing debts.
  • A debt management plan through In Charge typically lasts three to five years and requires you to make one monthly payment to the agency, which then distributes funds to your creditors.
  • Your credit score will initially drop when you enroll because creditors report the plan as a change in account status, but it often recovers within 12 to 24 months as you make on-time payments.
  • In Charge charges a setup fee and monthly service fee; these are legitimate costs, not hidden charges, and the agency discloses them before you commit.
  • This route works best if you have unsecured debt (credit cards, personal loans, medical bills) and a stable income; it does not work for secured debt like mortgages or car loans.

How a debt management plan through In Charge actually works

When you enroll, a counselor reviews your income, expenses, and debts with you. Together you create a budget and determine how much you can afford to pay each month toward debt. In Charge then contacts your creditors — typically credit card companies, medical providers, and personal loan lenders — and negotiates on your behalf. The goal is to lower your interest rate and sometimes reduce or waive late fees.

Once creditors agree to the plan terms, you make one monthly payment to In Charge. The agency holds that money and distributes it to each creditor according to the plan. You do not pay In Charge interest; the fees are the setup charge and the monthly service fee. Most plans run three to five years, though the timeline depends on your total debt and monthly payment amount.

During the plan, you typically cannot use the credit cards included in the arrangement. Creditors often freeze the accounts or require you to close them. This is part of the negotiation — creditors agree to lower rates in exchange for a commitment that you will not take on new debt while repaying.

What happens to your credit score when you enroll

Your credit score will drop when you first enroll in a debt management plan. Creditors report the plan as a change in account status, which appears on your credit report. The drop is usually 50 to 100 points, depending on your current score and credit history. This is a real consequence, not a hidden one — In Charge discloses this during your initial counseling.

However, the damage is temporary. As you make on-time payments through the plan, your score typically begins to recover. Many people see improvement within 12 to 24 months. By the time you finish the plan, your score is often higher than it was when you enrolled, because you will have paid down a large portion of your debt and demonstrated consistent, on-time payments.

If you are already behind on payments or in collections, your credit score is already damaged. In this case, a debt management plan may actually be the faster route to recovery than trying to pay off debt on your own while creditors report missed payments.

In Charge versus a consolidation loan: which path makes sense

A consolidation loan combines multiple debts into a single new loan, usually at a lower interest rate. You borrow money from a lender and use it to pay off your old debts. In Charge does not lend money; instead, it negotiates with your existing creditors to lower rates and restructure what you already owe.

A consolidation loan is faster — you can often close the loan and pay off your debts within weeks. A debt management plan takes longer because it depends on creditor negotiations and a multi-year repayment schedule. However, a consolidation loan requires you to may have access to based on credit score and income, and you may not get approved if your credit is damaged. In Charge does not deny people based on credit score; it works with people in difficult financial situations.

A consolidation loan also creates a new debt obligation. If you cannot afford the monthly payment, you are in the same position as before, just with a different lender. A debt management plan adjusts your payment based on what you can actually afford, and In Charge works with you if your circumstances change during the plan.

Fees, costs, and what you actually pay

In Charge charges a setup fee when you enroll in a debt management plan. This typically ranges from $50 to $75, though some states cap it lower. You also pay a monthly service fee, usually $25 to $50 per month, depending on your state and the complexity of your situation. Some states regulate these fees; others do not, so the exact amount varies.

These fees are separate from what you pay toward your actual debts. If your plan is $500 per month, you might pay $30 of that to In Charge as a service fee and $470 toward your creditors. The agency must disclose both the setup fee and the monthly fee before you enroll, and you can ask for a detailed breakdown of where your money goes each month.

There are no hidden charges, no "success fees," and no charges if you do not complete the plan. If you stop paying or withdraw from the plan, you are responsible for your original debts at whatever terms your creditors set — you do not owe In Charge additional money.

What debts In Charge can and cannot include in a plan

In Charge works with unsecured debts — credit cards, personal loans, medical bills, and payday loans. These are debts not backed by collateral. Creditors are more willing to negotiate on unsecured debt because they have less leverage; if you default, they cannot seize an asset.

In Charge cannot include secured debts in a plan. These include mortgages (backed by your home), car loans (backed by your vehicle), and student loans. If you are behind on a mortgage or car payment, a debt management plan will not help you catch up on those. You would need to address those debts separately — through loan modification, refinancing, or other means.

If you have both secured and unsecured debt, In Charge can help with the unsecured portion while you continue making regular payments on your mortgage and car loan. This is common; many people use a debt management plan to handle credit card debt while keeping their housing and transportation payments on track.

How to reach In Charge and what to expect in your first conversation

You can contact In Charge Debt Solutions by phone at 1-877-242-4254 or through their website. The initial credit counseling session is free and typically lasts 30 to 60 minutes. A counselor will ask about your income, expenses, debts, and financial goals. They will not pressure you to enroll in a plan; the first session is informational.

During that conversation, the counselor will explain whether a debt management plan makes sense for your situation. They will also discuss alternatives — such as negotiating directly with creditors yourself, pursuing a consolidation loan, or exploring bankruptcy if your situation is severe. In Charge is required by law to discuss all options, not just the plan they offer.

If you decide to move forward, you will receive a written agreement that spells out the setup fee, monthly fee, the creditors included, the proposed interest rates, and the expected payoff date. You have time to review this before you commit. Many people take a few days to think it over.

Frequently Asked Questions

Will In Charge contact my creditors without my permission?

No. In Charge only contacts creditors after you have signed an agreement authorizing them to do so. You control which debts are included in the plan and which creditors they negotiate with. If you want to keep a particular credit card out of the plan, you can.

What if a creditor refuses to negotiate?

Some creditors agree to lower rates; others do not. If a creditor refuses, In Charge will tell you and you can decide whether to keep that debt separate or pursue other options. Most major credit card companies and medical providers do negotiate, but smaller lenders sometimes decline.

Can I pay off the plan early?

Yes. If your financial situation improves and you want to pay off your debts faster, you can increase your monthly payment or pay a lump sum. In Charge will adjust the plan accordingly. There is no penalty for paying early.

What happens if I miss a payment to In Charge?

If you miss a payment, In Charge will contact you to discuss what happened. If you are having trouble affording the plan, they can work with you to adjust the payment amount or timeline. If you stop paying entirely, the plan ends and your creditors may resume collection efforts, but you do not owe In Charge additional fees.

Is In Charge a scam?

No. In Charge is accredited by the National Foundation for Credit Counseling and regulated by state law. It is a legitimate nonprofit. However, there are credit counseling scams out there, so verify any organization's NFCC accreditation before you work with them. You can check at nfcc.org.