Money Management International review 2024: A non-profit solution to your debt

If you feel like you’re drowning in high-interest credit card debt or medical bills, a non-profit credit counseling agency like Money Management International could provide much-needed assistance. By entering into the organization’s debt management plan, you could save money and pay off your debt within five years. 

Learn about Money Management International’s services, fees and accreditations to decide whether it’s right for you. All rates and fees are current as of April 10, 2024, and are subject to change.

How does Money Management International work

Money Management International offers comprehensive credit counseling and DMPs. Under a DMP, Money Management International works with your creditors to potentially lower your interest rates and waive or reduce late fees. The organization works with you and your creditors to come up with a debt repayment plan with a monthly payment you can afford. You make one monthly payment to Money Management International, and the organization disburses your payments to your creditors on your behalf based on the agreed-upon payment plan. 

Types of debt Money Management International helps manage

In Money Management International’s DMP, you can only include unsecured debt, such as credit cards, medical bills or personal loans. Secured debt, such as auto loans or mortgages, are not eligible. However, the organization does offer counseling services for other forms of debt: 

• Mortgages and rent: If you’re at risk of foreclosure or eviction, Money Management International offers one-on-one counseling with trained housing specialists. They will work with your loan servicer or landlord to discuss your options and help you create a budget and repayment plan so you can stay in your home. 
• Reverse mortgages: Those who are 62 or older looking to take advantage of a reverse mortgage must complete a reverse mortgage course from a HUD-approved agency. Through Money Management International, you can take the course and receive a certificate of completion. 
• Student loans: Federal and private student loans aren’t eligible for DMPs, but Money Management International has an online student loan program to help you identify your repayment options, learn about potential loan forgiveness programs and develop a strategy to eliminate your debt. 

How Money Management International fees work

Unlike debt settlement companies, which charge a percentage of your enrolled debt, Money Management International charges flat fees for its services. However, the organization will reduce or waive fees for customers who cannot afford its services. Fees vary based on the type of assistance you need. 

How does working with Money Management International impact credit score

How Money Management International affects your credit will depend on which services you utilize. If you’re taking advantage of its budgeting classes, student loan counseling or homebuyer courses, there’s no impact on your credit. 

If you enroll in a DMP, there can be a short-term effect on your credit. A DMP requires you to close your existing credit card accounts. When you close those accounts, you’ll have less available credit, and the average age of your credit accounts will shorten. With less credit available, your credit utilization will increase. Your credit utilization affects 30% of your FICO credit score, so closing those accounts can hurt your credit score.  

However, participating in a DMP could help your credit score improve over time. 

According to a 2023 study on the efficacy of DMPs released by FinRegLab, a non-profit organization, customers who enrolled in a DMP typically saw their credit scores decrease between the period before they entered counseling and the first quarter after the DMP began. However, their scores began to recover in the third quarter after the DMP’s start date, and their scores were higher by the time they completed the DMP. 

Money Management International ratings

Money Management International is a legitimate organization with a strong reputation, and it’s highly rated by users. 

In reviews, customers praised the organization’s effectiveness in helping them eliminate debt within a few years, and they said that the counselors were empathetic and helped reduce the amount of stress they faced managing their debt. As one reviewer said: 

“MMI was of great help helping us with creditors that would not give us the time of day. They worked out payment plans with 2 creditors n [sic] made our lives so much less stressful with lowered interest rates and fixed payments. It took 5 years but what a relief. 2019-2024” –User review on TrustPilot. 

How much can I save by using Money Management International?

It’s possible to save a substantial amount of money by participating in Money Management International’s DMPs. According to the organization, it works with your creditors to lower your interest rates and reduce or waive fees. Compared to what its clients would’ve paid if they had not enrolled in a DMP, its clients saved an average of $32,000. 

How long does a Money Management International debt management plan take? 

How long your DMP will take to complete depends on your starting balance, the interest rate on your credit accounts and how much money you can afford to pay each month. In general, Money Management International clients are out of debt in under five years. 

Other services Money Management International

Besides its DMPs, student loan counseling and foreclosure and eviction counseling, Money Management International offers the following services: 

• Bankruptcy counseling: If you’re considering bankruptcy because your debt is out of control, you’ll have to complete an approved bankruptcy counseling program. Money Management International has both pre-filing and pre-discharge course programs, and it provides certificates of completion you can submit to the court. 
• Homebuyer education: Money Management International is a HUD-approved agency, and it provides homebuyer education courses that meet down payment assistance and first-time homebuyer program requirements. 
• In-person workshops and online education: Money Management International hosts educational workshops, and it provides robust resources online to help you create a budget, pay down debt and build your financial literacy skills. 

Are their risks with a debt management plan from Money Management International? 

Although Money Management International is a reputable organization and DMPs can be an effective debt repayment tool, there are some risks to keep in mind:

• Damage to your credit: When you enter into a DMP, you commit to closing your existing credit accounts. Closing the accounts can damage your credit because you have less available credit.
• Limited access to credit: Because you have to close your credit accounts and cannot open new credit while you’re in a DMP, you’ll have limited options if an emergency pops up. Unless you have the cash available for unexpected expenses, going without credit can be challenging. 
• You must keep making payments: To benefit from a DMP, you must keep up with the agreed upon payment schedule. If you miss payments, your creditors may remove the interest rate and fee reductions, and you’ll no longer be eligible for the DMP. 

Money Management International reputation for managing debt

Money Management International has been in operation since 1958, and it has a stellar reputation as a credit counseling agency. In 2022 — the last available data — it handled over 46,000 DMP clients. It’s also a member of the Financial Counseling Association of America and the National Foundation for Credit Counseling — the two associations that are the gold-standard of the credit counseling industry. 

Previously, Money Management International was involved in a class-action lawsuit that alleged the organization improperly collected fees. However, the lawsuit is quite old —  it was settled in 2011 — and there have been no other class-action lawsuits or regulatory actions.  

Compare Money Management International alternatives

Money Management International is a credit counseling agency rather than a debt settlement company. Debt settlement companies, also known as debt relief companies, attempt to negotiate with your creditors to settle your debt for less than you owe. You have to stop making your required payments — which can damage your credit in the process — and you pay your creditors a lump sum to settle your debt. If the company is successful, they charge a percentage of your enrolled debt as their fee. 

Debt settlement can be a useful option if your debt is more than you can afford to repay and you’ve already missed payments, but it can be expensive and risky. 

Is Money Management International right for you?

If you have racked up high-interest debt and are finding it difficult to pay it down because of high interest rates, Money Management International could be an excellent solution. If you’re a candidate for its DMPs, you may qualify for interest rate and fee reductions and become debt-free in under five years. And depending on your income, you may qualify for reduced or waived fees. 

A DMP does require you to give up your credit cards. If that caveat is not something you can handle based on your lifestyle and habits, you may want to consider other options, such as debt consolidation loans, 0% balance transfers or do-it-yourself repayment strategies like the debt avalanche method. 

Frequently asked questions