Appearing in The New York Times on August 7, 2026, Ann Carrns talks to Andrew Pizor, senior attorney at NCLC, about how more people are seeking help managing their debt — not from extravagant purchases but rather the higher costs of needs like car repairs or medical bills.
“If your budget shows you can do the debt management plan, they can be helpful,” said Andrew Pizor, a senior attorney with the National Consumer Law Center. The plans’ fees are generally low, he said, and can even be waived, depending on your circumstances.
How does a debt management plan differ from debt settlement?
Debt settlement firms often operate as for-profit companies and charge higher fees for their services, which tend to be riskier for borrowers, Mr. Pizor said.
Settlement companies typically have clients stop paying their creditors and instead make payments to the settlement company, which tries to negotiate a significant reduction in the total debt balance, while debt management plans focus on helping clients pay off the full principal at lower interest rates. Mr. Pizor said settlement programs tend to have less reliable results, and lenders often won’t negotiate with them. If the debt isn’t ultimately settled, borrowers could end up owing more because of added interest and fees, and their credit may be seriously harmed. They could also be sued by the lender.
“Never try debt settlement.”
Andrew Pizor, senior attorney at NCLC.
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