How can credit counseling help?

If you aren't disciplined enough to create a workable budget and stick to it, your creditors may be willing to accept reduced payments if you enter a debt repayment plan with a reputable organization. Some credit counseling services charge little or nothing for managing the plan; others charge a monthly fee that could add up to a significant charge over time. Some agencies are not legitimate at all, so be cautious.

• Find out what services the business provides and what they cost.
• Businesses advertising voluntary debt reorganization plans may not explain that the plan is a Chapter 13 bankruptcy.
• Don't rely on oral promises. Get everything in writing.
• It's always wise before you do business with any company to check it out with your local consumer protection agency or the Better Business Bureau.

How do I locate a reputable credit counselor?

Look for an accredited Consumer Credit Counseling Service agency. Supported mainly by contributions from community organizations, financial institutions and merchants, accredited CCCS counselors provide services free or at a low cost. To contact a CCCS office for confidential help, look in your telephone directory white pages, or call (800) 388-2227, for an office near you.

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