If you’re living with debt in Michigan, you’re not alone. Whether you’re in Detroit, Grand Rapids, Lansing, or a small Upper Peninsula town, many Michiganders are struggling to keep up with rising credit card bills, loans, and everyday expenses. At APFSC, we provide compassionate, non-profit debt relief and credit counseling services that help individuals and families build a realistic plan to eliminate debt and create lasting financial stability.
The Growing Debt Problem in Michigan
Debt Challenges Across Michigan
Michigan’s economy has evolved significantly in recent years, but financial challenges persist for many households. The average credit card debt per borrower in Michigan is just over $5,400. At the same time, the average student loan debt has reached nearly $37,000, with about 13.6% of residents carrying active student loans.
Many people in Michigan face high medical costs, fluctuating income, and rising housing expenses. As a result, credit card balances grow, minimum payments become harder to maintain, and financial stress increases. Without a structured plan, it’s easy to feel stuck—but that’s where we come in.
How APFSC Helps Michiganders Pay Off Debt
We begin by offering a free consultation to help you understand your full financial picture. A certified counselor will assess your income, monthly expenses, and debt obligations. If you’re a good fit, we’ll recommend a customized Debt Management Plan (DMP) to simplify payments and potentially reduce interest rates.
Our DMP gives you the opportunity to:
- Combine unsecured debts into one monthly payment
- Work with creditors to reduce or eliminate interest
- Eliminate late fees and stop collection calls
- Pay off your debt in 3 to 5 years
- Receive financial coaching to avoid future debt
It’s not a loan. It’s a structured and proven way to pay off your debt with confidence and support.
Common Reasons People in Michigan Fall Into Debt
- Factory closures, layoffs, and job market shifts
- Out-of-pocket medical expenses or emergencies
- Credit card use for everyday living expenses
- Delayed student loan repayment after graduation
- Lack of access to budgeting tools or credit education
How a Debt Management Plan Works
A Debt Management Plan is a powerful way to repay unsecured debts—like credit cards, personal loans, and medical bills—without falling deeper into financial trouble. You’ll make one fixed monthly payment to APFSC, and we’ll distribute it to your creditors.
The benefits include:
- Lower monthly payments
- Interest rate reductions from participating creditors
- Stopping late fees and penalties
- No more harassing calls or legal threats
- Clear end date for becoming debt-free
We also provide ongoing support, education, and tools to help you succeed—long after the debt is paid off.
Talk to a HUD-certified housing counselor to get help with the housing challenges you’re facing.
Your Rights as a Michigan Consumer
In Michigan, you are protected under both federal and state laws. The Fair Debt Collection Practices Act (FDCPA) ensures that collectors cannot threaten, harass, or mislead you. Michigan also enforces a statute of limitations that limits how long creditors can pursue unpaid debts through legal action—typically six years for most debts.
If you’re receiving aggressive calls or letters, we can help you understand your rights and reduce the stress that comes with unpaid balances.
Michigan Debt Statistics
- Average credit card debt: $5,424
- Average student loan debt: $36,295
- Residents with student loans: 13.6%
- Total student loan debt in Michigan: $51.7 billion
- Average credit score in Michigan: 718
Why Choose APFSC?
As a non-profit organization, APFSC is focused on helping you—not profiting from your situation. We offer judgment-free support, transparent options, and actionable steps to help you get back on track.
When you contact us, you’ll speak with a certified counselor who understands the financial challenges unique to Michigan. You’ll receive a personalized action plan based on your income, debt, and long-term goals. There’s no obligation, and your first session is completely free.
Case Studies
Approved agency for all major creditors including
Geographic Locations
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Credit Counseling and Debt Management in Michigan | APFSC
Reviewed by an APFSC NACCC-Certified Credit Counselor · Last updated 2026-05-13
APFSC Michigan · 40600 Ann Arbor Road East Suite 201 · Plymouth, MI 48170 · 1-800-682-4007
Free consultation · Nonprofit · DOJ-approved · No obligation
American Pacific Financial Services Corp (APFSC) is a 501(c)(3) nonprofit credit counseling agency serving Michiganders. We are approved by the U.S. Department of Justice under 11 U.S.C. § 1115, BSI-certified to ISO 9001:2015 (cert #0047884258), a BBB Accredited Business, and our credit counselors are NACCC-certified.7
Note on this address. 40600 Ann Arbor Road East Suite 201, Plymouth, MI 48170 is APFSC’s registered office in Michigan (registered-agent service: CT Corporation System). All counseling is delivered by phone and secure web by counselors operating from APFSC’s nonprofit headquarters; the Plymouth address is the agency’s legal contact point for Michigan service-of-process and regulatory correspondence. Walk-in counseling is not offered at this address.
Talk to a counselor about your Michigan debt today
Call 1-800-682-4007 Monday–Friday, or book your free consultation online. The first session is free, there is no upsell, and a NACCC-certified counselor — not a salesperson — will review your income, expenses, and debts and tell you what actually works for your numbers under Michigan law.
Quick links
- Why Michiganders call APFSC
- What a Debt Management Plan does for Michiganders
- Cost and timeline of a DMP
- Michigan consumer-debt law you should know
- How to verify a credit counselor serving Michigan
- APFSC at a glance
- Frequently asked questions
Why Michiganders call APFSC
Michiganders carrying credit-card debt are not the population stereotype: most are employed, many are college-educated, and a large share are recovering from a one-time event — a medical bill, a job change, a divorce, a stretch of underemployment. A Debt Management Plan is built for exactly that profile. Average credit-card balance per borrower in Michigan: {VERIFY: avg credit-card balance per borrower from myFICO state data}.1
Michiganders who call APFSC are typically carrying $5,000–$40,000 in unsecured debt — credit cards, medical bills, personal loans, collections — spread across three to five accounts. At minimum payments and current APRs, that profile takes 20 to 27 years to retire and costs more in interest than the original principal.6 A Debt Management Plan compresses that to 3 to 5 years with a single monthly payment.
We are nonprofit. We do not sell loans, debt-settlement services, or credit-repair gimmicks. The counseling session is free whether or not you ever enrol in a plan.
Counseling reaches every county in Michigan — from Detroit, Grand Rapids, Warren, Sterling Heights, and Lansing to smaller communities in between.
What a Debt Management Plan does for Michiganders
A Debt Management Plan (DMP) is a structured 36–60-month repayment program administered by APFSC on your behalf. It is not a loan — you are not borrowing money. It is not debt settlement — you repay the full principal. It is a coordinated repayment of your existing unsecured debts at concessions APFSC has pre-negotiated with most major creditors.6
What a DMP changes for a Michigander
- One consolidated monthly payment to APFSC, drawn by ACH on a date you choose
- Lowered interest rates on enrolled accounts (often into single digits) under each creditor’s published DMP-acceptance policy
- Waived late and over-limit fees on enrolled accounts
- Collection calls stop on enrolled accounts as soon as creditors accept the proposal
- A predictable payoff date, usually 36–60 months from enrolment
Creditors APFSC works with
National card issuers — Chase, Citi, Capital One, Discover, Bank of America, Wells Fargo, Synchrony, U.S. Bank, American Express — all maintain standing DMP-acceptance programs that apply uniformly to your Michigan accounts. Regional banks and credit unions operating in Michigan typically also participate. Your counselor will tell you, account by account, what concessions each creditor offers.
Where a DMP is the right tool
- Total unsecured debt between roughly $5,000 and $100,000
- Steady monthly income, even if tight
- You can commit to a single payment in the $200–$900/month range
- You are willing to close the enrolled credit accounts (a DMP requirement)
- You want to repay the debt, not erase it
Where a DMP is not the right tool
We will tell you. The free counseling session ends with a written action plan — sometimes that plan recommends a consolidation loan, a referral to a Michigan consumer attorney, or simply a tighter budget without enrolment. A nonprofit counselor’s job is to identify the cheapest path out, not to enrol you.2
For the side-by-side decision matrix, see DMP vs. Debt Consolidation Loan and Debt Relief Options Compared.
Cost and timeline of a DMP
What it costs
Reputable nonprofit DMP fees typically include a one-time set-up fee (commonly $0–$75) and a modest monthly administrative fee (commonly $25–$50), with totals capped well below what for-profit debt-settlement firms charge. Where Michigan regulators (notably the Michigan Department of Insurance and Financial Services) impose additional caps or registration requirements on credit-counseling and debt-adjustment activity, APFSC operates within those limits. Your written disclosure will show every fee before you enrol.
APFSC fees are disclosed in writing before you enrol. There are no enrolment fees that exceed what Michigan law permits, no “monthly maintenance” charges hidden off the disclosure, and no fees taken from your first payment before any creditor has received a dollar.
How long it takes
Most DMP clients complete their plan in 3 to 5 years. Two illustrative client outcomes (names changed, dollars rounded):
- $14,569 across 4 cards, 21-year minimum-payment payoff → 5-year DMP payoff. Monthly payment dropped from $380 to $288; total interest fell from $17,563 to $2,699; interest saved: $14,864.
- $28,776 across 5 cards, 26-year minimum-payment payoff → 5-year DMP payoff. Monthly payment dropped from $750 to $568; total interest fell from $35,322 to $5,331; interest saved: $29,991.
Your numbers will differ. The free counseling session produces a written projection specific to your accounts.
Michigan consumer-debt law you should know
Knowing Michigan law before you talk to a collector — or to any counselor — keeps you from giving up rights you actually have.
Statute of limitations on credit-card debt in Michigan
The statute of limitations for collection lawsuits on credit-card debt and other written contracts in Michigan is 6 years under Mich. Comp. Laws § 600.5807(8). The clock generally runs from the date of the last payment or the last written acknowledgment of the debt.
A debt past the statute is still owed — but it becomes harder for a creditor to enforce in court. Making a partial payment or written acknowledgment can restart the clock under Michigan law. If you are being sued on an old account, consult a Michigan consumer attorney before responding or paying anything.
Wage garnishment in Michigan
Michigan follows the federal wage-garnishment cap: a judgment creditor may garnish the lesser of 25% of weekly disposable earnings or the amount by which weekly disposable earnings exceed 30× the federal minimum wage. Public-benefit income (Social Security, SSI, unemployment, most veterans’ benefits) is generally exempt. A creditor must first sue, win, and obtain a judgment before any wage attachment is possible.
Who regulates credit counselors and debt-relief agencies in Michigan
Credit-counseling and Debt Management Plan agencies operating with Michigan consumers are regulated primarily by the Michigan Department of Insurance and Financial Services. Any agency that should appear in the Michigan Department of Insurance and Financial Services’s database — and doesn’t — should be treated as a red flag. The Michigan Attorney General is where consumer complaints against any agency, including APFSC, would surface; check it before you sign anything.
For federal bankruptcy-context only: the U.S. Trustee Program’s Chapter 7 means-test median income for a four-person household in Michigan is approximately $123,010 (figure updated periodically by EOUST).5 We mention this purely because filers in some states qualify for Chapter 7 more easily than in others; bankruptcy is not a service APFSC offers.
How to verify a credit counselor serving Michigan
Before you sign anything — with APFSC or anyone else — run these checks. They take fifteen minutes:
- DOJ-approved counseling agency list. justice.gov/ust/list-credit-counseling-agencies-approved-pursuant-11-usc-111.5 APFSC is listed for the federal district(s) covering Michigan.
- Michigan state regulator. Michigan Department of Insurance and Financial Services — confirm any state licence or registration that Michigan requires of a debt-adjuster or DMP agency. If a counselor refuses to identify the Michigan regulator they’re registered with, that’s a sign to walk.
- Michigan Attorney General consumer complaints. Michigan Attorney General — search the agency’s exact legal name. Look at the pattern, not the existence, of complaints.
- IRS Tax Exempt Organization Search. apps.irs.gov/app/eos — verify the 501(c)(3) status.
- BBB and CFPB Consumer Complaint Database. A clean record at both is the floor, not the ceiling.
The longer playbook is in Is Nonprofit Credit Counseling Legitimate? and DOJ-Approved Credit Counseling Explained.
Federal credit-counseling law in plain English
Under 11 U.S.C. § 109(h), any individual filing personal bankruptcy must complete a credit counseling session with a DOJ-approved agency within 180 days before filing, and a financial-management course before discharge.5 APFSC is approved to provide both certificates. We are not a bankruptcy law firm and we do not file bankruptcies — if filing turns out to be the right tool for you, your counselor will refer you to a Michigan consumer bankruptcy attorney. We do not earn anything from a bankruptcy referral. (Tax treatment of canceled debt is covered in IRS Publication 46813; bankruptcy-tax interaction in IRS Publication 9084.)
APFSC at a glance
| Credential | What it means | How to verify |
|---|---|---|
| DOJ-approved (11 U.S.C. § 111) | Authorised to provide pre-bankruptcy counseling and debtor education | DOJ approved-agency list |
| 501(c)(3) nonprofit | Tax-exempt, mission-driven | IRS Tax Exempt Organization Search |
| BSI ISO 9001:2015 #0047884258 | Quality-management system independently audited | BSI certificate directory |
| BBB Accredited Business | Adheres to BBB standards of marketplace trust | BBB profile |
| NACCC-certified counselors | Proctored exam + 16 CEU hours every two years | fcnonline.org |
Contact APFSC Michigan
40600 Ann Arbor Road East Suite 201
Plymouth, MI 48170
1-800-682-4007 · Monday–Friday
Get directions · Book consultation
Counseling is delivered by phone and secure web. Walk-in counseling at the Plymouth address is by appointment only.
Frequently asked questions
Is credit counseling free for Michiganders?
The counseling session is free at APFSC. If you enrol in a Debt Management Plan, modest monthly administrative fees apply, capped by Michigan regulation. Every fee is disclosed in writing before enrolment.
Will a DMP hurt my credit score?
Enrolling in a DMP does not, by itself, lower your FICO or VantageScore. What can affect your score: the closing of revolving accounts that a DMP requires, and any late payments already on file before you enrolled. Most clients see scores recover within 12–24 months of finishing. Detail: How a DMP Affects Your Credit Score.
Can a Michigan creditor garnish my wages?
Yes, but only after a creditor has sued and obtained a judgment. Michigan follows the federal cap (lesser of 25% of disposable earnings or the amount above 30× federal minimum wage), and Social Security / SSI / unemployment are exempt.
What is the statute of limitations on credit-card debt in Michigan?
6 years from the date of last payment or written acknowledgment, under Mich. Comp. Laws § 600.5807(8). After that, the creditor’s right to sue is generally extinguished — but the debt remains legally owed and can affect credit reports.
Should I take a debt-consolidation loan instead of a DMP?
Sometimes. A consolidation loan is cheaper if you qualify for a single-digit APR and you have already fixed the spending that created the debt. If your credit is bruised or you are still using cards to cover the gap, the loan typically makes things worse. Full comparison: DMP vs. Debt Consolidation Loan.
What if bankruptcy is the right answer for me?
We’ll tell you, and refer you to a Michigan consumer bankruptcy attorney. Federal law requires credit counseling with a DOJ-approved agency in the 180 days before filing, and APFSC issues that certificate. We do not file bankruptcies.
Can a DMP stop a Michigan collection lawsuit that’s already been filed?
Not automatically. If a creditor has already filed suit, a DMP enrolment doesn’t pause the case. Your counselor can sometimes negotiate a settlement of the litigation in coordination with the DMP, or refer you to a Michigan consumer attorney. The earlier you call, the more options exist.
Is APFSC a Better Business Bureau accredited business in Michigan?
APFSC’s BBB accreditation is held at the agency level, not state-by-state. It applies to APFSC’s relationship with Michiganders the same as anywhere else. You can verify on bbb.org.
Can a Michigander include medical debt in a DMP?
Yes — most medical debts that have been transferred to a third-party collector or charged to a credit card are eligible for a DMP. Hospital-billed balances still in pre-collections can sometimes be reduced via charity-care or financial-assistance programs first; your counselor will flag that.
Ready to talk to a counselor about your Michigan debt?
A free APFSC counseling session is the lowest-risk move a Michigander carrying unsecured debt can make this month. We will tell you what works for your numbers — even if the answer is not a DMP.
Book your free consultation →
or call 1-800-682-4007, Monday–Friday.
APFSC · serving Michigan · 40600 Ann Arbor Road East Suite 201, Plymouth, MI 48170
DOJ-approved · 501(c)(3) nonprofit · BSI ISO 9001:2015 #0047884258 · BBB Accredited · Counselors NACCC-certified · Serving all Michiganders · No upsell · No obligation
Related reading
- [[link: pillar-01-credit-counseling-guide]]
- [[link: pillar-02-debt-relief-options-compared]]
- [[link: draft-01-dmp-vs-consolidation]]
- [[link: draft-02-nonprofit-credit-counseling-legit]]
- [[link: draft-03-dmp-credit-score-impact]]
- [[link: draft-04-doj-approved-credit-counseling]]
Footnotes
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myFICO, “Average credit-card debt and APR by state,” accessed 2026. https://www.myfico.com/credit-education/blog ↩
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Federal Trade Commission, “Coping with Debt.” https://consumer.ftc.gov/articles/coping-debt ↩
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IRS Publication 4681, “Canceled Debts, Foreclosures, Repossessions, and Abandonments.” https://www.irs.gov/pub/irs-pdf/p4681.pdf ↩
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IRS Publication 908, “Bankruptcy Tax Guide.” https://www.irs.gov/pub/irs-pdf/p908.pdf ↩
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U.S. Department of Justice, U.S. Trustee Program — Approved Credit Counseling Agencies (11 U.S.C. § 111). https://www.justice.gov/ust/list-credit-counseling-agencies-approved-pursuant-11-usc-111 ↩↩↩↩
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Consumer Financial Protection Bureau, “What is a debt relief program and how do I know if I should use one?” https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-relief-program-and-how-do-i-know-if-i-should-use-one-en-1457/ ↩↩
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National Association of Certified Credit Counselors. https://fcnonline.org/ ↩