 TITLE: Is Debt Counseling a Good Idea? CONTENT: Alternatives to Debt Counseling\n-------------------------------\nIt may be possible to tackle your debt on your own without debt counseling. Exploring financial assistance programs may provide resources that create breathing room in your budget so that you can direct more of your income toward debt repayment. Resources like the 211 Network, Benefits.gov and USA.gov are great places to start.\nMaking a realistic plan for getting out of debt also comes down to understanding your income, expenses and spending habits so you can build an effective budget. On top of that, you can look to your creditors to see if they're open to reducing your interest rates. Another action item is finding a do-it-yourself debt repayment plan that feels right to you. The snowball approach and avalanche method, for example, are two different strategies that can help you successfully repay your debt.\nIf your situation is dire and you're hoping to avoid bankruptcy, debt settlement may be a last-resort option. This involves working with a for-profit debt relief company that usually asks consumers to stop making their debt payments. Instead, you'll make payments into a savings account that's set up by the debt relief company. From there, they'll negotiate with creditors to see if they can satisfy the debt for an amount that's less than what you owe.\nIt's a process that can take years—and all the while, your missed debt payments will drive your credit score further and further down. Debt relief companies also charge consumers for their services. Consider this option if your only other choice is declaring bankruptcy. END