Definition
Guidance from certified counselors, usually at nonprofit agencies, covering budgets, debt options, and credit. Initial sessions are typically free or low cost, and the agency may propose a debt management plan for unsecured debts.
Why it matters
It is the legitimate, regulated end of the debt-help industry, unlike much of what advertises online. A counselor can lay out the honest menu (budget fixes, a DMP, settlement, bankruptcy) with the trade-offs attached.
Example
Someone juggling $18,000 across four cards books a free session with a nonprofit agency. The counselor rebuilds the budget, finds $450 a month, and enrolls them in a debt management plan with reduced interest rates and one payment.
Put it into practice
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.