Credit Counseling:

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

Debt Management Plans:

If your financial problems stem from too much debt or your inability to repay your debts, a credit counseling agency may recommend that you enroll in a debt management plan (DMP).  A DMP alone is not credit counseling, and DMP's are not for everyone.  You should sign up should sign up for one of these plans only after a certified credit counselor 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 credit counseling organization still can help you create a budget and teach you money management skills.

In a DMP, you deposit to pay your unsecured debts, like your credit card bills, student loans and medical bills 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 credit counseling organization describes to you.  A successful DMP requires you to make regular timely payments and could take 48 moths or more to  complete.  Ask the credit counselor to estimate how long it will take for you to complete the plan.  You may have to agree not to apply for-or-us and additional credit while you're participating in the plan.