Blogging for Change

Credit Counseling vs. Debt Relief

by Jesse Campbell on
9/8/2025
in Repaying Debt
Young man smiling using the computer.

When debt starts to feel overwhelming, it’s natural to search for a way out. Two terms you’ll come across often when browsing the internet are credit counseling and debt relief. At first glance, they might sound like interchangeable solutions, but they serve different purposes. Understanding how they work, and how they work together, can help you find the right path forward.

What is credit counseling?

Think of credit counseling as your first appointment with a financial “doctor.” You share what you’ve been experiencing, whether it’s stress over bills, difficulty making payments, or confusion about your options. Then your counselor uses their expertise to pinpoint the likely causes and suggest next steps.

Credit counseling is an all-purpose financial assessment. A certified credit counselor helps you:

  • Take stock of your entire financial picture (debts, income, and expenses)
  • Understand your full range of options, from adjusting your budget to considering consolidation or bankruptcy 
  • Get a personalized, step-by-step plan that fits your goals

Best of all, credit counseling services from MMI are free, available 24/7, and come with no obligation. It’s a safe way to explore your choices before committing to any one path. Learn more about how to prepare for your credit counseling session.

What is debt relief?

If credit counseling is the diagnosis, debt relief is the treatment plan. Debt relief is a broad category of solutions designed to help you reduce or fully pay down your debt. It can take many forms, such as:

  • Negotiating with creditors for a lower interest rate
  • Consolidating your payments into one manageable monthly bill
  • Enrolling in a debt management plan (DMP) to repay everything in full with reduced interest rates
  • Entering a debt resolution plan (DRP) to settle accounts for less than you owe if repayment in full isn’t realistic

In short, debt relief is the action you take after understanding your situation.

Credit counseling vs. debt relief: key differences

The biggest difference between credit counseling and debt relief is that credit counseling helps you first understand your debt relief options. It is often the first step before you begin a debt relief program.

Here’s how they compare:

Credit counseling: Conversations that provide a clear financial analysis. It helps you see every option (including DMPs, DRPs, consolidation, and even bankruptcy) and decide what makes sense for you.

Debt relief: The actual solutions you may pursue after counseling, like repayment plans or settlement. Some debt relief options are nonprofit (like DMPs and DRPs through MMI), while others are offered by for-profit companies.

What makes MMI different?

Many organizations only offer one type of solution, forcing you to fit into their model. MMI is different. Because we offer both DMPs and DRPs, we can help a wider variety of clients—whether you’re juggling high-interest credit card balances or you’ve already fallen behind and need a structured way to settle accounts.

And unlike many for-profit debt relief companies, our nonprofit status ensures that our recommendations are always in your best interest.

If debt has been keeping you up at night, connect with an MMI credit counselor today. Our free, confidential sessions are available online or over the phone 24/7. Together, we’ll find the right solution. No matter your situation, you have options. 

Tagged in Debt strategies

Jesse Campbell photo.

Jesse Campbell is the Content Manager at MMI, with over ten years of experience creating valuable educational materials that help families through everyday and extraordinary financial challenges.

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