Want to enroll in debt management? You'll need to meet these 3 requirements first.

CBS News

21-07-2025

Americans are carrying record levels of credit card debt right now, with the average cardholder owing about $8,000 in total. While carrying this type of debt is never ideal, especially at today's elevated rates, the recent uptick in credit card debt makes quite a bit of sense. Sticky inflation has caused the prices of essentials to skyrocket, and because budgets aren't stretching nearly as far as they should, it has become common for cash-strapped Americans to rely on their credit cards to get by.
And, as the credit card debt issues compound, more people are searching for solutions to getting rid of what they owe, ideally without wrecking their credit. There are a few ways to do that, but debt management, in particular, may be worth considering. Unlike other types of debt relief, debt management doesn't require you to borrow more money or default on what you owe. Rather, the goal is to help you pay off your debt by streamlining the payment process and working with your creditors to lower your interest rates and fees.
But while debt management programs have helped millions of Americans get rid of their debt, they aren't the universal solution that some assume them to be. These programs are designed for people in particular financial circumstances, and that means there are qualification requirements that determine whether you're a good fit. What exactly are the eligibility rules, though?
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While program requirements can vary, in general, you'll need to meet the following to take advantage of what debt management can offer:
The foundation of any successful debt management plan is your ability to make consistent monthly payments. The credit counseling agency you work with on this type of plan will need to see that you have a reliable income source that can cover both your essential living expenses and your proposed debt management payment.
During the initial consultation, the credit counselor will review your income from all sources, whether that's employment, Social Security, disability benefits or other regular payments. They're not just looking at the total amount, though. They want to see stability and predictability. For example, someone with a steady $3,000 monthly income might be a better candidate than someone earning $4,000 but with highly variable or seasonal work.
The credit counselor will also calculate your debt-to-income ratio and determine whether you'll have enough left over after essential expenses to make meaningful progress on your debts. If your proposed payment would be so small that it would take decades to pay off your balances, they might recommend exploring other debt relief options instead.
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Debt management plans are specifically designed for unsecured debts like credit cards, personal loans and medical bills. You generally can't include secured debts like mortgages, car loans or student loans. Many agencies also have both minimum and maximum debt limits for enrollment.
The minimum threshold varies from one program to the next, but it ensures that debt management makes financial sense for both you and the agency. For very small debt amounts, the monthly fees might outweigh the benefits. On the other hand, if you owe more than $50,000 to $100,000 in unsecured debt (limits vary by agency), you might need to explore alternatives like debt forgiveness or bankruptcy.
The outcomes also tend to be better for clients who have multiple creditors. The goal is to roll multiple monthly debt obligations into one payment while lowering your fees and interest charges, so if you only owe money on one credit card, you might get the same results without the monthly fees by working with the card issuer directly instead.
Perhaps the most challenging requirement is the commitment aspect. Enrolling in debt management isn't just about making the required monthly payments. It requires you to make fundamental changes to your financial habits and lifestyle, too.
For example, most programs require you to close the credit accounts included in your plan, which means that you can't continue to use those cards while you're paying them off. Many agencies also ask you to avoid taking on any new debt during the program, at least without their approval. This can feel restrictive, especially if you're used to relying on credit for emergencies or unexpected expenses.
You'll also need to commit to the financial counseling and education components. Most reputable agencies require participants to complete budgeting workshops or check in regularly with counselors to track their progress and address any challenges that arise.
Debt management can be a powerful tool for the right person, but if you don't meet the criteria, don't lose hope. Consider working on building a stable income, paying down some debt independently or exploring other debt relief options. The most important thing isn't qualifying for debt management. It's finding a solution that matches your specific financial situation that sets you up for long-term success.