Education is the core service credit counseling offers: a counseling session, typically free, in which a counselor reviews a consumer’s debts and explains the options for resolving them. Because that session is where most consumers compare their options and decide, information missing from the conversation is missing from the decision.
A 2026 survey of 1,504 U.S. adults who are enrolled in, previously enrolled in, or seriously considered a debt management plan (DMP) found that 91% of those who spoke with a credit counselor wish they had received more or better information on at least one topic (Debt Disclosure Project/Harris Poll, 2026). The gaps cover the core terms of the decision: how the plan affects future credit, what it costs in total, and how long it takes.
What Consumers Say They Weren’t Told
The most common gaps are the same questions a consumer would need answered to compare a DMP with any other option.
| Topic consumers wish they had better information on | Share of consumers who spoke with a credit counselor |
|---|---|
| How a DMP could affect their ability to get credit in the future | 36% |
| Total cost, including all fees | 34% |
| How long the plan would take to complete | 34% |
| How enrolling could affect their credit score | 32% |
| How the agency earns revenue and whether that affects the options presented | 27% |
| Whether the proposed outcome was guaranteed or only an estimate | 27% |
| Other options that may have been more affordable | 23% |
Source: Debt Disclosure Project/Harris Poll survey, conducted online August 28 to 31, 2026, among 1,504 U.S. adults. Base: consumers who spoke with a credit counselor. Accurate to within ±3.4 percentage points.
One former enrollee described the gap directly: “The full price after all fees, and the interest. It was never brought up during our long conversation.” (Woman, 36, Tennessee, former DMP enrollee) (Debt Disclosure Project/Harris Poll, 2026).
What Federal Disclosure Rules Already Require
Several of the topics consumers say were missing appear in federal disclosure rules that apply in other parts of the debt market.
| Rule | Who it covers | What must be disclosed |
|---|---|---|
| 11 U.S.C. § 111(c)(2)(D) | Nonprofit budget and credit counseling agencies approved to provide pre-bankruptcy counseling | Funding sources, counselor qualifications, possible impact on credit reports, and any program costs the client will pay |
| FTC Telemarketing Sales Rule | For-profit debt relief companies that sell by phone | All fees, how long results will take, and how much the consumer must save before a settlement offer; no fees until a debt is resolved |
Sources: 11 U.S.C. § 111(c)(2)(D); Federal Trade Commission, Debt Relief Services and the Telemarketing Sales Rule: A Guide for Business.
Federal bankruptcy law lists funding sources, credit report impact, and costs as required disclosures for approved agencies (11 U.S.C. § 111). Those are three of the top gaps in the survey. Separately, the FTC requires debt relief companies to disclose fees and timelines before enrollment and bars them from collecting fees until a debt is settled or otherwise resolved (FTC, Telemarketing Sales Rule guide).
Why the Funding Question Matters
Agencies that administer DMPs are commonly paid three ways: a setup fee, a monthly fee, and “fair share,” a percentage of each consumer payment that creditors route back to the agency. Because fair share is generated only when a consumer enrolls in a DMP and keeps paying, how an agency is funded is part of what a consumer needs to know to weigh its recommendation. In the survey, 27% wish they had been told how the agency earns revenue (Debt Disclosure Project/Harris Poll, 2026). Of the four main options, the DMP is the only one that generates revenue for the agency, which is why how an agency is paid belongs in the intake conversation.
Nonprofit status is a federal tax classification, and it does not by itself establish that an agency’s recommendations are independent of its funding. In 2006, the IRS reported that many of the credit counseling agencies it audited “offered little or no counseling or education” (IRS, IR-2006-80).
What a Total Cost Disclosure Would Show
Total cost was a gap for 34% of consumers. A DMP does not reduce principal: the consumer repays 100% of the balance, plus interest at the reduced rate, plus agency fees. On $20,000 of credit card debt paid at $500 a month, a DMP totals about $25,041, or 125% of the balance, over 50 months (Debt Disclosure Project Cost Calculator).
Questions to Ask Before Enrolling
- What will I pay in total, including all fees and interest, over the full life of the plan?
- How is your agency paid, and do you receive fair share payments from my creditors?
- What are all of my options, including ones your agency does not offer, and what would each cost in total?
- What happens to my interest rate if a creditor stops participating or I miss a payment?
Frequently Asked Questions
What do consumers most often wish they had been told in credit counseling?
The most common gap is how a debt management plan could affect future access to credit (36%), followed by total cost and plan length (34% each). Overall, 91% of consumers who spoke with a counselor wish they had better information on at least one topic.
Are credit counseling agencies required to disclose how they are paid?
Agencies approved to provide pre-bankruptcy counseling must disclose their funding sources, possible credit report impact, and program costs under 11 U.S.C. § 111. In the 2026 survey, 27% of consumers wish they had been told how the agency earns revenue.
Does nonprofit mean a credit counselor’s advice is unbiased?
Nonprofit is a federal tax classification. It does not by itself establish that an agency’s recommendations are independent of how the agency is funded.
Sources
- Debt Disclosure Project. (2026). 9 in 10 consumers who met with a credit counselor wish they had received better information, new data shows. https://www.einpresswire.com/article/952363425/9-in-10-consumers-who-met-with-a-credit-counselor-wish-they-had-received-better-information-new-data-shows
- Bankruptcy Code, 11 U.S.C. § 111 (Nonprofit budget and credit counseling agencies; financial management instructional courses). https://www.law.cornell.edu/uscode/text/11/111
- Federal Trade Commission. (n.d.). Debt relief services and the Telemarketing Sales Rule: A guide for business. https://www.ftc.gov/business-guidance/resources/debt-relief-services-telemarketing-sales-rule-guide-business
- Internal Revenue Service. (2006). IRS takes new steps on credit counseling groups following widespread abuse (IR-2006-80). https://www.irs.gov/pub/irs-news/ir-06-080.pdf
- Debt Disclosure Project. (2026). Cost calculator. https://www.debtdisclosureproject.org/tools/cost-calculator/
- SavingAdvice. (2026). What credit counselors don’t tell you at intake. https://www.savingadvice.com/articles/2026/07/24/10742574_what-credit-counselors-dont-tell-you-at-intake.html