Being confronted with debt is a serious problem that can bring sleepless nights and emotional pain.

Yes, being swamped in debt can be too much that for some people, the only way to get through is to seek credit counseling.

True, a credit counseling agency can provide enormous help for people who are having difficulty managing their finances and settling debts. A credit counselor can negotiate on behalf of the borrower so that they can obtain easier repayment terms from their creditors. In some cases, when the borrower is really stuck in huge debt, a credit counselor may suggest a debt repayment plan.

A debt repayment plan is when the credit counseling agency pays creditors on behalf of the borrower.

The borrower will submit repayments to the credit counseling agency and the agency will in turn, distribute these payments to creditors.

Do you really need a credit counseling agency or is it possible to try to solve your debt problems by yourself? Before deciding on availing the services of an agency, you should take an objective examination of your situation.

• How did you end up in such a serious debt situation?

• Was it because of your uncontrolled spending habits?

• If yes, do you think you can try to make some personal changes in your spending?

It is important that you realize that a credit counselor may assist you in some areas of your finances but it is still up to you to do the work.

In case you need to go through a debt management plan, you will still be responsible in submitting your payments on time. If you will not be able to do so, then the debt management program will simply not work. For this reason, you need to be truly determined to do the necessary adjustments or changes in your habits so that the repayment plan will be a success.

Debt Management Plan and You

Seeking help from a credit counseling agency is recommended when you’re confronted with the following situations:

• debts are starting to disrupt your personal relationships especially with your family or friends

• you have been denied credit by a lender

• you receive constant calls from your creditors

• you can’t control your spending

Once you have decided to obtain the services of a credit counseling agency, it is important that you make the right choice.

Finding the Right Counseling Service

It is a fact that there are agencies that are not really after the best interest of their clients. Even agencies that claim to be non-profit may not be sincerely working or doing its best to help a client get out of debt. How can you be sure that your counseling agency is a legitimate one?

Find out if your credit counseling company is a member of national organizations like the National Foundation for Credit Counseling (NFCC) or the Association of Independent Consumer Credit Counseling Agencies (AICCCA).

It is also a good idea to check from the Better Business Bureau and from your State Attorney General’s office if there has been any complaints filed against the company by former clients.