Solving my credit problems

If you are not enough to create a workable budget and stick to it, work out a repayment plan with your creditors, or keep track of mounting bills, consider contacting a disciplined credit counseling organization. Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But not all are reputable. For example, just because an organization says it is "charitable," there is no guarantee that their services for free, affordable or even legitimate. In fact, some credit counseling organizations charge high fees, or hide their fees by pressure on consumers to "voluntary" contributions that make only more debt.

Most credit counselors offer services through local offices, the Internet or by telephone. If possible, find an organization that offers counseling in person. Many universities, military bases, credit unions, housing authorities and departments run by the U.S. Cooperative Extension Service-profit credit counseling programs. Your financial institution, local consumer advocates and friends and family can also be a good source of information and references.

Reputable credit counseling organizations can advise you on managing your money and debts, help you create a budget and offer free educational materials and workshops. Your consultants are certified and trained in the areas of consumer credit, money and debt management and budgeting. Counselors discuss your entire financial situation with you and help you develop a personalized plan to solve your money. An initial consultation usually lasts an hour, with an offer of follow-up sessions.