Look for a non-profit service with local offices that will provide at least one free consultation.


The United States Trustee Program has a list of credit counseling agencies that are pre-approved by the federal government for pre-bankruptcy counseling. These agencies may offer services for people not filing bankruptcy as well.You can search the program's list for an agency near you at http://www.justice.gov/ust/list-credit-counseling-agencies-approved-pursuant-11-usc-111.
Interview several potential candidates before you make a final decision on the credit counseling agency you want. Find out the qualifications for the counselors, whether the agency makes educational materials available for free, and what fees (if any) the agency charges for its services.Keep in mind that one agency isn't necessarily better than another simply because it charges a high fee for its services. Similarly, you shouldn't dismiss an agency because their services are free of charge.
 Before you work with your credit counselor, you will need to compile all your notices, account statements, bills, and notes so the credit counselor can analyze your situation.


The credit counselor also will need information about your income and expenses so he or she can determine the source of your credit management problems.For example, if you've simply overspent on entertainment and unnecessary items, the credit counselor may be able to propose a budget that can help you get back on track.
 Your credit counselor will review your financial information and help you build a budget and create a payment plan that works for you.


If you are unable to pay your debts, your credit counselor may create a debt management plan for you. With this type of plan, the credit counselor connects with your creditors and makes arrangements to pay off your debt. You make monthly payments to the credit counseling agency that are then distributed to your creditors.Typically, the credit counselor will be able to work with your creditors, including any collection agencies, to lower the total amount you must pay. For example, the credit counselor may be able to get a creditor to lower your interest rate or reduce or eliminate certain fees that have accrued on your account.Keep in mind that when you are on a debt management plan, there may be restrictions on your behavior that you must follow if you want to remain with the service. For example, you may not be able to use existing credit cards or open any new credit accounts while you're enrolled in the debt management program., Make sure you have a written agreement before you make any payments towards your debt through a credit counseling agency.Read the agreement carefully before you sign it, and don't be afraid to ask if there's a term in the agreement that you find confusing or unclear.
Find out if enrolling in the program will negatively affect your credit score, and whether the agency got any of your creditors to report your accounts as current on your credit report. You also need to make sure you know exactly what debts are included in the payment agreement, and which – if any – you remain responsible for paying on your own.If you have existing payment agreements with any creditors or collection agencies, continue making those payments until you receive confirmation that the plan has been finalized and the creditor or collection agency has agreed to it.Once you sign the agreement, make sure you keep a copy for your records.
 As long as you're making your payments under a debt management plan, creditors cannot sue you or garnish your wages under an existing judgment.


If you have difficulty making the payments established by your debt management plan, contact your credit counselor as quickly as possible. He or she may be able to negotiate a lower payment, or help you amend your budget to figure out the source of the difficulty.Keep in mind that if you miss a payment, collection agencies may sue you or, if judgment against you has already been entered, may begin garnishment proceedings.
Choose a credit counseling agency.
Gather information about your finances.
Meet with a credit counselor.
Sign your payment agreement.
Make your payments as agreed.
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