Debt management is a structured and systematic plan to clear your unsecured debts. Debt management companies analyze the money you may have after paying for your living expenses. They contact your creditors, negotiate for settlements, and create a debt management plan (DMP) to roll your unsecured debts into one. You then stop payments, and the company pays the creditor based on your settlement until they settle your debts. You pay them a monthly fee during this period.

A brief know-how on debt management companies
Debt management companies are non-profit organizations and need accreditation from the National Foundation for Credit Counseling (NFCC), American Fair Credit Council (AFCC), or Financial Counseling Association of America (FCAA). Once you enroll, they pay the debt on your behalf. They deal with your creditors and choose the best plan for you. Since they deal with your creditors directly, using their services can cause a dip in your credit report.

If you want to use the services of a debt management company, choose one that is accredited by NFCC or FCAA. Check if the average cost, including enrollment and monthly fees, is between $50 and $75. While some companies settle your debt within two years, some may take three to four years. Read reviews for their customer service and research about their credibility. Based on the above factors, the top five debt management companies are as follows:

• National Debt Relief
  National Debt Relief is one of America’s largest debt settlement companies. They settle multiple types of debts, including unsecured debt. They charge a fee of 15% to 25% of the enrolled debt. They have an A+ Best Business Bureau rating and are accredited by AFCC. You can enroll in their program by phone if you have a minimum of $7,500 in debt and defaulted on your payments for many months. They settle your debts within two to four years. However, the period may vary based on your debt and current financial position.
• American Consumer Credit Counseling
  The American Consumer Credit Counseling has an NFCC accreditation and offers counseling, budgeting advice, and debt management plans in 50 states. Their monthly fees are lower than other companies, and you can consult and enroll for their services by phone. They accept clients with a minimum debt of $10,000 and charge an enrollment fee of $39 and a monthly fee capped at $70. They may waive or reduce your fee based on state regulations. Their DMP covers all types of unsecured debts.
• Pacific Debt Inc
  Pacific Debt Inc is accredited by AFCC and operates in about 29 states and Washington D.C. They service unsecured debts with a minimum of $10,000 and hope to make their clients debt-free within two to four years. Pacific does not charge an enrollment or upfront fee and charges only when you see good results. Pacific advises their clients to deposit the money they save in a separate savings account, which they may use to settle debts if required. Pacific is popular for its customer service and high customer satisfaction reviews.
• InCharge Debt Solutions
  Knowledgeable staff and a useful website that guides users on debt management are the USP of InCharge Debt Solutions. They negotiate with creditors to get their clients the best settlement possible that helps them save some cash. Their average monthly charges are about $33 and offer a range of free counseling services for debt consolidation and debt management. They do not have minimum debt or specific enrolment criteria and are accredited to the NFCC. You can track your debt position by creating an account on their website.
• Money Management International
  Money Management International provides counseling, budgeting advice, bankruptcy counseling, and debt management plans for unsecured loans. MMI is accredited to NFCC. They charge an enrollment fee of $50 with an average monthly fee of $33. They operate in 50 states and have a physical presence in 25 states.

Debt management is not a recommended solution, but you can use it as a last resort if the debt is too much to manage on your own or if you are facing bankruptcy.