If you're seeking debt relief from credit card debt, then you are not alone. Americans from all walks of life are falling into debt every day. Even more now than ever, consumers across the land are turning to consumer credit counseling for a free hoist out of the ditch of debt they are buried in.

It is a slippery slope and a long way back, but it can be done. A stagnant economy, increase in unemployment and a volatile international situation have not made things easy. Whatever the reason may be, this site mission is to help people like you find a way out of the debt trap to financial freedom. Before you decide to enroll in a debt counseling or management program, you probably have many questions.

Will counseling affect my credit?

Credit counseling services rarely make any reports to credit bureaus. Your creditors may choose to report counseling. However, this is preferable to bankruptcy or many late payments.

Which payments should I include in the program?

You can probably include most credit card payments. Student loans, back taxes, some store cards, and other debts may not be eligible for inclusion. Before you start a management program, contact your creditors directly to see if they'll work with your program.
Is it best to choose a non-profit group?

Not always. If your credit is blemished, a non-profit group will be able to help you make payments and improve your credit score. If your credit rating is good, a for-profit group will be able to help you keep it good - but their fees will be higher.

What fees will I have to pay?

Usually a legitimate debt management program will charge a small fee for each debt that is included. This fee is usually $5-20 per account. The rest of their fees come from the creditors that they work with. Beware of any agency that charges a fee equal to your first monthly payment.

When should I declare bankruptcy?
 In some situations your debt will be too high for a credit counselor to be able to assist you. If this is the case, you next need to determine how permanent your situation is. If you're likely to be in a better financial position in the near future, for example if you've been laid off from your job - avoid bankruptcy. Try to work with your creditors to make arrangements. If the situation is more permanent, such as disability that will prevent you from working - bankruptcy may be your best option.

Dangers and Frustrations of Credit Counseling...

For starters, these companies are not on your side. They are in business to make a profit, which is all fine and good. However, unlike an attorney, there is no duty to advise you to do what is in your best interests. A bankruptcy lawyer must represent you, the client, and your interests. No such duty exists for a paralegal or credit counselor. Besides, do not let the perception that a debt counseling company is a "non-profit organization" fool you. There is recent news about these people in trouble because the IRS and Federal Trade Commission (FTC) are investigating and have recently cracked down on these companies who are accused of lying about their true profit structure just to get tax breaks and your trust. The reality is that many debt consolidation companies are funded directly by the credit card companies that you want to get rid of. What kind of advice do you suppose you'll get from them?

Requirements of Debt Counseling
Even if you wanted to knock your debt down using these companies, you will need to have a regular flow of income that far exceeds the money you spend each month on your bills. It does you no good to give them only $45/month to share with all your creditors. There is an income requirement which many people don't meet. An employee may talk you into signing an agreement even if it eats into your rent money, not because they care about your best interests, but because they may be getting a commission for each dollar they take in. Again, only an attorney has a duty to give you straight advice about what is in your best interests, not their own.