Seeking the services of a credit counselor can be part of a strategic plan to get out of serious financial debt. If you are not able to meet your financial obligations, or are facing bankruptcy, action is required; these circumstances have serious long-term ramifications if ignored. A possible resource is to utilize the services of a credit counselor, who may be able to:

--          Negotiate repayment plans with credit card companies and other lenders

--          Negotiate lower interest rates on credit card balances and loans

--          Set up monthly payment plans

When looking for a credit counseling organization to assist you, here are some tips:

--          Find a reputable and legitimate counseling agency. Check the agency’s reputation through the Better Business Bureau and your own state’s office of the Attorney General.

--          The National Foundation for Credit Counseling (NFCC), Inc. offers a set of guidelines for selecting the right credit counselor on their Web site.

--          The NFCC offers a Budget Worksheet to help you start to create and stick with a monthly budget.

--          Use an accredited agency. Every NFCC member agency must obtain and maintain accreditation by the Council on Accreditation for Children and Family Services (COA). COA is an independent third-party not-for-profit accrediting organization that has reviewed more than 1,500 social service programs to ensure compliance with rigorous best-practice standards.

--          not pay high up front fees. A nominal monthly fee of $25.00 to $50.00, or a set-up fee in a similar amount, is acceptable. If the agency asks for anything higher, look for a different service.

--          ically, you will send a monthly payment to the credit counseling agency and they will make an electronic payment to your debtors. Periodically, check with your debtors to make sure they are being paid by the counseling agency.