What In Charge Financial Does

In Charge Financial is a nonprofit credit counseling agency that works with people carrying multiple debts. They do not lend money or consolidate debts themselves. Instead, they help you understand your options — including debt management plans, where they negotiate with your creditors on your behalf to lower interest rates and set up a single monthly payment you make to them.

The organization has been operating since 1989 and is accredited by the National Foundation for Credit Counseling (NFCC). They offer phone and online counseling, and their initial consultation is free. If you move forward with a debt management plan through them, there is a setup fee (which varies) and a monthly service fee, both of which they disclose upfront.

Key Takeaways

  • In Charge Financial offers free initial credit counseling to review your full debt picture and discuss whether a debt management plan makes sense for you.
  • A debt management plan through In Charge involves them negotiating directly with your creditors to reduce interest rates and combine payments into one monthly amount you send to them.
  • You pay In Charge a setup fee and monthly service fee if you enroll in a plan; these fees are separate from what you pay toward your actual debts.
  • The process typically takes three to six months to negotiate with all your creditors, and your credit report will show the plan while you are in it.
  • In Charge also offers budget counseling and financial literacy resources even if you do not enroll in a formal debt plan.

How the Free Counseling Session Works

When you contact In Charge Financial, you can schedule a free phone or online counseling session with a certified credit counselor. During this session, you will walk through your income, expenses, and all your debts — credit cards, personal loans, medical bills, and so on. The counselor will not pressure you to sign up for anything.

The counselor will explain what options exist for your situation. If you have high-interest credit card debt and a stable income, a debt management plan might make sense. If your debts are very large or your income is very low, they may discuss bankruptcy or other routes instead. This conversation is where you learn whether consolidation through them is realistic for you.

You can reach In Charge by phone at 1-800-338-2227 or through their website to request a counseling appointment. They typically schedule sessions within a few days.

What Happens If You Enroll in a Debt Management Plan

If you decide to move forward, In Charge will contact your creditors — usually credit card companies, medical providers, or other unsecured debt holders — to negotiate. They ask for lower interest rates, removal of late fees, and a timeline for payoff. Not every creditor agrees, but many do, especially if the alternative is you defaulting entirely.

Once creditors agree, In Charge sets up a plan showing your new monthly payment amount, the payoff date (often three to five years), and which creditors are included. You make one payment each month to In Charge, and they distribute it to your creditors according to the plan. You will receive statements showing where your money went.

During the negotiation phase — which usually takes one to three months — you should not make payments to your creditors directly. Doing so can confuse the negotiation or cause creditors to reject the plan. In Charge will tell you when negotiations are complete and when to start your first payment.

Fees and What They Cover

In Charge charges a setup fee when you enroll, typically between $0 and $50 depending on your situation and state law. They also charge a monthly service fee, usually between $25 and $50 per month, which comes out of your payment before money goes to creditors. Some states cap these fees by law; In Charge will tell you the exact amount before you enroll.

These fees pay for the counselor's time, the negotiation work with creditors, and the payment processing. They do not go toward your actual debt — they are the cost of the service. If you cannot afford the fees, ask whether In Charge offers a reduced-fee or fee-waived plan; many nonprofit agencies do for people with very low income.

You will also continue to pay your debts themselves. If your total debt is $15,000 and your new negotiated payment is $300 per month, you are paying $300 to In Charge, who takes their fee and sends the rest to creditors. You are not paying less total debt; you are paying it on a slower, more manageable schedule with lower interest.

How This Affects Your Credit Report

When you enroll in a debt management plan, the plan itself appears on your credit report. Creditors report it as "account in debt management plan" or similar language. This notation stays on your report while you are in the plan and for a period after you complete it.

The impact on your credit score varies. Some people see their score drop initially because creditors may report the plan as a negative status. However, as you make on-time payments through the plan, your payment history improves, which can help your score over time. The key is that you are making regular payments and not defaulting — that is what creditors and future lenders care about most.

Once you finish the plan and all debts are paid, the accounts close and the plan notation eventually falls off your report. At that point, your credit profile shows a history of on-time payments, which is positive.

Alternatives to Consider

A debt management plan is not the only option. If you have very high debt relative to income, bankruptcy might be faster and result in a better long-term outcome, even though it damages your credit more severely in the short term. If your debts are smaller or you have higher income, a personal consolidation loan from a bank or credit union might let you pay everything off faster without a third party involved.

Some people also try negotiating directly with creditors themselves, without using an agency. This works if you have the time and confidence to make the calls, but creditors are often more willing to negotiate when a professional counselor is involved.

In Charge's free counseling session is the place to discuss these alternatives. A good counselor will be honest about whether a debt management plan is your best move or whether something else makes more sense.

What to Have Ready Before You Call

Before your counseling appointment, gather a list of all your debts: creditor names, account numbers, current balances, and interest rates. You do not need perfect documentation — rough numbers are fine for the first conversation. Also have your monthly income and a sense of your regular expenses (rent, utilities, groceries, insurance).

If you have recent credit card statements or loan documents, those help, but they are not required. The counselor will ask you questions to fill in gaps. The goal of the first session is to give you and the counselor a clear picture of where you stand, not to sign paperwork.

Frequently Asked Questions

Does In Charge Financial lend me money?

No. In Charge does not lend money or provide funds. They work with creditors you already owe to negotiate lower rates and set up a payment plan. You pay In Charge a monthly fee for this service, and they distribute your payment to your creditors.

What if a creditor refuses to join the debt management plan?

Some creditors may decline to participate. If that happens, you typically continue paying that creditor separately on your own, outside the plan. In Charge will tell you which creditors agreed and which did not before you enroll, so you know what to expect.

Can I use a credit card while I am in a debt management plan?

Most creditors require you to stop using the accounts included in the plan. Some plans allow you to keep one card open for emergencies, but this varies. In Charge will explain the specific rules when you enroll. Taking on new debt while in the plan can jeopardize the agreement.

How long does it take to pay off debt through In Charge?

Most plans run three to five years, depending on your total debt and the monthly payment amount you can afford. The counselor will show you a timeline during your first session so you know what to expect before you commit.

Is the initial counseling session really free?

Yes. The first session with a credit counselor at In Charge is free, and you are not obligated to enroll in a plan afterward. Many people use the free session just to understand their options and then decide on their own what to do next.