 TITLE: How Much Does Debt Counseling Cost? CONTENT: Is Debt Counseling Expensive?\n-----------------------------\nNonprofit debt counseling agencies are created to serve the public interest by educating people about personal finance. To that end, their services are meant to be affordable and many of their services are free. When these agencies do charge, their fees are intended to cover their expenses—and not to turn a profit.\nWith many nonprofit credit counseling services, the initial consultation is free. If a credit counselor suggests a DMP and you agree to move forward, you may be asked to pay a setup fee and an ongoing monthly charge. Limits on these fees can vary by state. In California, for example, DMP fees may not exceed 8% of the amount paid to creditors or $35, whichever is less. California also allows for a $50 (maximum) education and counseling fee. Nationwide, DMP fees are capped at $79.\nBe wary of a counseling service that is for-profit or asks for hundreds or thousands of dollars upfront. Debt counseling should help improve your financial outlook, not send you further into debt. \"Get a specific price quote in writing,\" the Consumer Finance Protection Bureau advises. \"If an organization won't help you because you can't afford to pay, look elsewhere.\"\nEven if a DMP requires a modest setup charge and monthly fees, it should help you reduce your interest costs and make your payments more manageable. If you're presented with a plan that doesn't accomplish these goals, think twice about its usefulness. END