What Is the Best Debt Management Program?

Tempting promises from debt management relief companies frequently cause otherwise savvy consumers to quickly part ways with much-needed funds. Doing advance homework is critical, since not all organizations are legitimate. An organization also may not provide all the services you need, such as bankruptcy or housing counseling, for example. Springboard Nonprofit Consumer Credit, accredited by the National Foundation for Credit Counseling, offered the best combination of fees and services.

Criteria

In order for a debt management program to have a "best" superlative, the organization must have met specific criteria. First, the company should have an "A+" rating with the Better Business Bureau. Second, it should have an easily navigable website. Third, any setup or initiation fees should be made clear up front and should not be excessive. Fourth, the organization should provide plenty of tips and tools, such as loan calculators and educational opportunities. Finally, the organization should be a member of a consumer debt organization, such as the National Foundation for Credit Counseling.

Reputation

Springboard, in business since 1974, earned an A+ rating from the Better Business Bureau and enjoys an excellent reputation as an above-board debt relief agency. From 2008 to March 2011, Springboard had eight complaints filed with the BBB (site information is updated daily). Ratings on TrustLink, a BBB program that allows consumers to write candid opinions online, and Yelp, an online ratings forum, are favorable. The website Top Ten Reviews also ranked Springboard among the best debt programs nationwide.

Fees

Springboard does not work for lenders, although it accepts donations from credit card companies to fund its operations, according to the firm's website. The initial consultation, during which your personal financial picture will be evaluated, is free. As your debts increase -- and the level of assistance you require increases -- so do your fees, which vary from state to state. Debt management plan fees usually begin with a $50 setup fee, and monthly administration fees are a percentage of the monthly disbursal -- for example, 6.5 percent of your monthly payment.

Educational Tools

Springboard offers a wide range of books, programs, articles and other items to help consumers understand the good and bad consequences of using credit, including programs designed to help children. All counseling, tips and tools are offered in English and Spanish, and are guaranteed confidential. Consumers who need bankruptcy or housing counseling can also find resources through Springboard; its program is certified by the Department of Housing and Urban Development. Lastly, Springboard offers consumers the chance to learn about their credit score, how it's calculated and how it affects their financial pictures.