Sean Pyles leads podcasting at NerdWallet as the producer and host of NerdWallet's "Smart Money" podcast. On "Smart Money," Sean talks with Nerds across the NerdWallet Content team to answer listeners' personal finance questions. With a focus on thoughtful and actionable money advice, Sean provides real-world guidance that can help consumers better their financial lives. Beyond answering listeners' money questions on "Smart Money," Sean also interviews guests outside of NerdWallet and produces special segments to explore topics like the racial wealth gap, how to start investing and the history of student loans.
Before Sean lead podcasting at NerdWallet, he covered topics related to consumer debt. His work has appeared in USA Today, The New York Times and elsewhere. When he's not writing about personal finance, Sean can be found digging around his garden, going for runs and taking his dog for long walks. He is based in Ocean Shores, Washington.
Lead Assigning Editor Kathy Hinson
Lead Assigning Editor | Personal finance, credit scoring, debt and money management
Kathy Hinson is a former Lead Assigning Editor for the Core Personal Finance team at NerdWallet. Previously, she spent 18 years at The Oregonian in Portland in roles including copy desk chief and team leader for design and editing. Prior experience includes news and copy editing for several Southern California newspapers, including the Los Angeles Times. She earned a bachelor’s degree in journalism and mass communications from the University of Iowa.
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Feeling overwhelmed by your debt? A debt management plan might be the solution.
This debt payoff tool puts you on a path to pay off your debts — typically from credit cards — over three to five years. With a DMP, several debts are rolled into one monthly payment and creditors reduce your interest rate. In exchange, you agree to a payment plan that usually runs three to five years. Note that interest rate cuts are standardized across credit counseling agencies, based on your creditors' guidelines and your budget.
Here’s a comparison of the debt management plans at some major nonprofit credit counseling agencies .
ACCC Available in 50 states.
Maximum $39 startup fee. Average $25 monthly fee.Cambridge Available in all states by phone and online.
Average $40 startup fee. Average $32 monthly fee.GreenPath Available in all 50 states.
Average $35 startup fee. Average $28 monthly fee. Average startup fee $39. Average monthly fee $25.Takes three to five years, and you’re generally unable to use credit cards or get new lines of credit while on the plan.
Missing a payment can derail the plan and end your interest rate cuts. Earn up to $350 in rewards each yearWith a Nerdwallet+ membership, it's easy to rack up rewards for the smart financial decisions you're already making.
GET STARTED
DMPs aren’t for everyone. Depending on the agency, only 20% to 35% of clients end up using this debt relief option. Of those who do, about 55% to 65% complete the plan, depending on the year and how the agency reports completions.
You might consider a DMP if:
If your consumer debt is 36% or more of your annual income.You have a steady income and think you could pay off your debt within five years if you had a lower interest rate.
You can get by without opening new lines of credit while on the plan.DMPs are not always the best route for debt relief . Problem debt from student loans and medical bills will generally not be covered under such plans. Other options:
If your problem debt is less than 15% of your annual income, you could take a DIY approach using the debt avalanche or debt snowball method.
A debt consolidation loan , if you have good enough credit to qualify, can also gather debts into one at a lower interest rate. You have control over how long the loan is and retain your ability to open new credit lines.
Bankruptcy may be better if your debt is more than 40% of your annual income and you see no way to pay it off within five years. This debt relief tool can quickly give you a fresh start, and consumers' credit scores can start to rebound in as little as six months.
If you think a DMP might be your best option for debt relief, start by choosing a credit counseling agency . Consider:
Certification and accreditation : Look for an agency that's a member of the National Foundation for Credit Counseling or the Financial Counseling Association of America . They require agencies to be accredited by an independent organization, and both require certification and a standard level of quality among counselors.
Access: Ask yourself how you’d prefer to receive services: over the phone, in person or online.
Cost: Fees vary by agency, the state you live in and your financial need. Before you sign up, verify how much you’ll pay each month toward your debt and in fees.
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Sean Pyles is the executive producer and host of NerdWallet's Smart Money podcast. His writing has appeared in The New York Times, USA Today and elsewhere. See full bio.
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