Credit Counseling

If what you really need is money management education or budget counseling, consider getting help from a credit counseling organization.

These agencies can also suggest options for digging out of debt, provide housing counseling, and refer you to other agencies that provide specialized help.

Some credit counseling agencies can contact your creditors to set up payment plans, or create a debt management plan.  If you do want help from a credit counseling agency, check out the company’s credentials first.

Not all agencies are legitimate—some charge excessive fees, fail to perform promised services or provide bad advice. 

Also, many credit counseling debt management plans will negotiate a lower required monthly payment for you with your creditors, but if the creditor does not agree to waive the interest, you can actually owe more to that creditor than when you started. 

Credit counseling debt repayment plans also will not include any loans on your house or car, so if you are behind in those payments, you will still have to work something out with that creditor.