GreenPath Financial Wellness Review 2024
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The agency may be a good fit if you:
Are looking for a debt management plan you can access online.
Like virtual experiences. GreenPath offers free webinars, interactive courses and a virtual financial coach that is available 24/7.
Want access to support in Spanish. More than 15% of GreenPath’s staff is bilingual in Spanish.
Value a long-standing organization; GreenPath has been around for more than 60 years.
GreenPath’s services and fees
Like most nonprofit credit counseling agencies, GreenPath provides common services that vary in price and availability. These services include:
Financial counseling: You and a counselor comb through your finances and debt and set personalized goals in a free initial session.
Debt management plan: A counselor creates a plan to consolidate unsecured debts and lower the interest rate, setting up one monthly payment to erase the debt over three to five years.
Bankruptcy counseling: GreenPath offers pre-file bankruptcy counseling over the phone; this is the first of two court-mandated counseling sessions. GreenPath does not currently offer pre-discharge bankruptcy counseling.
Student loans: A counselor outlines your repayment options and develops a customized plan.
Housing counseling: GreenPath offers help for prospective home buyers, people struggling to afford their mortgage or rent, and homeowners considering reverse mortgages.
Counseling services available at GreenPath:
GreenPath Service | Fee |
|---|---|
Financial counseling | Free. |
Debt management plan | Fees vary based on your state of residence and specific debt amount, with a maximum startup fee of $50 (average is $35) and a maximum monthly fee up to $75 (average is $28). |
Bankruptcy counseling | Pre-filing: $50. You may qualify for a lower fee based on your income. |
Student loans | Free. |
Housing counseling | $0 to $199, depending on the service. Members of some credit unions may have their fees waived. |
How GreenPath compares
Most credit counseling agencies offer the same basic services. How they differ generally comes down to where they operate, how they’re accredited and what they charge. Here’s how GreenPath stacks up:
Accreditation: GreenPath is a member of the National Foundation for Credit Counseling and is accredited by the Council on Accreditation, an outside body that ensures standards of practice among counselors and oversight for agencies.
Online support: GreenPath offers an online client portal, a quick financial health assessment and other educational resources and tools on its website.
Completion rate of debt management plans: GreenPath says that 59% of its DMP clients complete the program after enrolling.
Availability: Service is available in all 50 states and the District of Columbia, with in-person help in 14 states.
GreenPath’s debt management plan
A debt management plan is a debt relief option that helps people get a handle on consumer debt, primarily credit card bills. Debts are rolled into a single monthly payment with a reduced interest rate. Interest rate cuts are standardized across credit counseling agencies based on your creditors' guidelines and your budget.
In return, you agree to a payment plan that fits your budget, usually for three to five years. You likely won’t be able to open new lines of credit for the duration of the DMP, or use credit cards (although many creditors allow one to stay open for emergencies and travel).
There’s little room for missed payments once you’re enrolled in a plan; if you miss a payment, your creditors may drop accounts from the program, ending the lowered interest rate and leaving you to deal with debt on your own.
A debt management plan can save you time and money versus paying off the debt on your own. Here’s an example based on the average GreenPath client with credit card debt (interest rates are averages across multiple cards and individual results may vary):
Debt management plan | DIY debt paydown |
|---|---|
$14,612 debt. | $14,612 debt. |
8.8% interest rate. | 22% interest rate. |
$378 monthly ($328 to debt, $50 to monthly fee). | $378 monthly. |
55 months. | 68 months. |
Interest: $3,145; Fees: $1,575.* | Interest: $11,051. |
*Figured with the average setup fee of $35 and average monthly fee of $28. | |
Note: In a debt management plan, individual creditors offer the same adjusted APR for all credit counseling agencies. The difference in average APR among credit counseling agencies is a reflection of their clients’ creditors and does not indicate one agency will offer lower adjusted APRs than another.
When to consider a DMP:
If you're struggling to make monthly payments on your consumer debt.
If your consumer debt is 36% of your annual income or greater.
If you don’t qualify for a debt consolidation loan.
Before signing on to a DMP, know that other debt relief options might be better for your financial situation.
