 TITLE: What Is Credit Card Debt Counseling? CONTENT: How Does Credit Card Debt Counseling Work?\n------------------------------------------\nDebt counseling, also called credit counseling, involves working with a professional to help you manage your debt. Certified credit counselors, financial advocates affiliated with nonprofit agencies such as the National Foundation for Credit Counselors, can help you get a better understanding of your debt and help you devise a plan to pay it off.\nWhen you meet with a credit counselor, they'll take the time to understand your finances and unsecured debt obligations. If you are struggling with credit card debt specifically, they will see how much you owe across how many accounts and will help you craft a repayment plan.\nIn cases of severe debt, a credit counselor may suggest a debt management plan (DMP), which outlines specifically how your debt will be paid off. As part of a DMP, you'll make one monthly payment to the credit counseling agency, which in turn will pay your creditors on your behalf. They will often negotiate repayment with your lenders, who may lower your interest rates. You'll usually pay a small upfront fee and ongoing monthly fee for the service, and you'll likely be required to close the accounts that are part of the plan.\nThough they may sound similar, a debt management plan is different from a debt settlement program. Debt settlement programs \"settle\" your debt for less than what you owe, and often require you to stop making payments on your accounts. Doing so can have a significant negative effect on your credit. Debt settlement is a last-resort option if bankruptcy is your only other avenue. END