Debt relief options, explained side by side.
There's no single right answer for everyone. Here's an honest comparison of the main ways out of unsecured debt — so you can see where a non-profit debt management program fits, and where it doesn't.
Debt management and debt settlement are not the same. A non-profit debt management plan repays the full balance you owe through one monthly payment at a reduced interest rate, keeping your accounts in good standing. Debt settlement — usually run by for-profit companies — deliberately stops payments to negotiate a lower payoff, which typically damages your credit. NDM is a 501(c)(3) non-profit.
| Non-Profit Debt Management PlanWhat we offer | For-Profit Debt Settlement | Minimum Payments (status quo) | |
|---|---|---|---|
| How it works | One affordable monthly payment; we distribute to creditors and negotiate lower interest. | You stop paying and save into an account while a company tries to settle for less. | You keep paying each card's minimum directly, every month. |
| Effect on credit | Accounts stay current when you keep up the plan payment. | Typically damages credit while accounts go delinquent. | Stays current, but high balances keep utilization high. |
| Typical timeline | 36–60 months to a clear payoff date. | 24–48 months, with no guaranteed outcome. | Often 15–30+ years on high-interest cards. |
| Fees | Modest, regulated non-profit fees — capped by Michigan law. | Often 15–25% of enrolled debt. | None — but interest compounds against you. |
| Tax impact | Debt repaid in full — generally no forgiven-debt tax. | Forgiven balances may be taxable income. | None. |
| Best for | Steady income, wanting structure and to protect credit. | Severe hardship, already behind, considering bankruptcy. | Small balances you can clear quickly on your own. |
Comparison is general and educational. Your counselor will review your specific situation. See disclosures.
Explained, not sold
Choose the right path with guidance — not pressure.
Every household is different. A licensed counselor walks through each option with you and helps you see which one fits — honestly, even when that’s not enrolling with us.
Our programs
Three ways we help — choose with guidance, not pressure.
Not sure which fits? That's exactly what the call is for.
A licensed counselor will walk through your options with you — free, and with no obligation to enroll.