With the help of a debt management plan, the burden of paying off your debt is significantly reduced. Credit counselors can often work out deals between the you and your creditors to reduce fees and/or interest rates, all in the best interest of both parties.

Lately the credit counseling industry has come in for its share of criticism.  Credit counseling agencies collect their fees from your lenders. So unless they get your debt repayments, they do not get paid. As a result credit counseling agencies have been accused of using predatory tactics and working as the collection arm of creditors.

While these claims may be justified to a certain extent, credit counselors can also be a huge help, provided you pick the right credit-counseling agency.

When you start your hunt for a suitable credit counseling agency, you can first go online to look up companies in your city or general area. Compare the services and rates they offer. The internet has made this task easy.

If a particular company has way too many complaints and grievances filed against it online, stay away from it. The BBB (Better Business Bureau) is one of your best friends in researching this.

Also, approach a credit counseling agency with realistic expectations. Credit counselors are not magicians who can wave a magic wand and make your $50,000 debt go away. They can merely negotiate a better interest rate for your debt, or help you cut down on unnecessary fees.

If you have too much “bad debt” (i.e., debt on cash advances, high interest rate credit cards,) it may be difficult to negotiate more favorable terms with those particular creditors.

If your debt is primarily “good” (i.e., mortgage or student loan debt,) you will find many more varied and beneficial options open to you.

Remember that enlisting the help of a credit counseling agency does not make them responsible for your debts. Ultimately you will still have to watch your expenses, take stock of your purchases, and keep up with your negotiated payments.

You can choose to get out of debt alone, or you can take the help of a credit counseling agency. Either way, getting rid of your debt is still entirely your responsibilty, with or without the help of a credit counseling organization.

The key thing a credit counseling agency can do is keep you on the right track and use their clout with your credotirs to get you a workable plan so you can finally get out of debt.

• Are you are in debt and you just don’t know what to do?
• Have you stopped answering your telephone because of all the harrassing calls from creditors?
• Is your debt growing through late fees and over the limit credit card fees?

Some facts that will reassure about the people at your credit counseling center:

** They do not judge you on the bad choices you made in the past but instead want to help you to make better choices from now on. Credit counseling centers want to help you change your mindset about your present financial situation once and for all, so that you aren’t sitting in their office again in two or three years.

** A credit counselor must be trained in debt management and credit counseling by an outside organization. Check with the National Foundation for Credit Counseling to see if the company you want to work with is listed.

** Turn to friends and family members for credit counseling center recommendations. If anyone you know has needed help to manage their debts, ask them who they used as a credit counseling center.

**Your can also turn to your local church community for recommendations. There are a number of Christian credit counseling centers if you would prefer to go that route.

** Getting started shouldn’t cost you anything. Your first meeting with a credit counselor at the center is usually free of charge. This is your time to lay out your financial problems and let them tell you what they will be able to help you with.

** Pay attention to your feelings throughout your first meeting. Does what they say make sense? The steps you will have to take will most likely be difficult. So there should certainly be a lot of logical steps for you to follow.

** This person will be helping you deal with a very personal issue. It goes without saying that you need to be able to trust your counselor. This may be the time to trust your gut feeling. If the person seems like a flake or too good to be true, ask for someone else.

** Don’t forget to inquire about the fees for service. Ask if your credit counseling center gives out free budget worksheets and other materials, or if it holds free or low cost classes about getting control of and managing your debts. But if you are needing individual financial advice, you should expect to pay a reasonable fee.

A good honest relationship with your counselor will help you get positive results.  But remember, your counselor can only advise you. If you want to succeed, it is up to you to work hard and do the necessary things their way.

If you work with them, you will find that above all a credit counseling center is there to help you change your wicked spending ways and help you finally get out of debt.