Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person Debt and Credit Counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit Debt & Bill Counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.

Reputable Debt & Bill Counseling organizations can advise you on managing your money and bills, help you develop a budget, and offer free educational materials and workshops. Their counselors are certified and trained in the areas of consumer credit, money and debt management, and budget. Counselors discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.

Debt Consolidation Plan: If your financial problems stem from too much debt or your inability to repay your debt, a Debt Negotiation agency may recommend that you enroll in a Debt Relief Program (DMP). A DMP alone is not Debt Couseling, and DMPs are not for everyone. You should sign up for one of these plans only after a certified Credit Counseling has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money. Even if a DMP is appropriate for you, a reputable Debt Help organization still can help you create a money plan and teach you money management skills.

In a DMP, you deposit money each month with the Debt and Credit Counseling organization, which uses your deposits to pay your unsecured debt., like your credit card bills, student loans, and medical money owing, according to a payment schedule the counselor develops with you and your creditors. Your creditors may agree to lower your interest rates or waive certain fees, but check with all your creditors to be sure they offer the concessions that a Debt Couseling organization describes to you. A successful DMP requires you to make regular, timely payments, and could take 48 months or more to complete. Ask the Debt Negotiation to estimate how long it will take for you to complete the plan. You may have to agree not to apply for — or use — any additional credit while you’re participating in the plan.

Protect Yourself

Be wary of Debt and Credit Counseling organizations that:

charge high up-front or monthly fees for enrolling in Debt Negotiation or a Debt Help Program.

pressure you to make “voluntary contributions,” another name for fees.

won’t send you free information about the services they provide without requiring you to provide personal financial information, such as credit card account numbers, and balances.

try to enroll you in a Debt Relief Program without spending time reviewing your financial situation.

offer to enroll you in a Debt Counseling Plan without teaching you money plan and money management skills.

demand that you make payments into a Debt Counseling Plan before your creditors have accepted you into the program