 TITLE: Can Credit Counseling Hurt Your Credit? CONTENT: Is Credit Counseling a Good Idea?\n---------------------------------\nCredit counseling has benefits and drawbacks, and it's important to understand your situation to determine whether you need a credit counselor. Here are a few things to consider:\n*   **It only works for certain debts.** If you're struggling to make payments on a mortgage, auto loan or another type of secured loan, you won't be able to include it in a debt management plan. The same goes for student loans. However, if you have credit card or personal loan debt, you can include that.\n*   **Other options may make more sense for you.** If your credit is in great shape and your debt is manageable, it may be better to apply for a balance transfer credit card or consolidation loan with a low interest rate to pay off your other debts. Just know that if you do this and then continue to charge on your credit cards, you'll likely end up in worse shape. A debt management plan is best if you can afford to make a monthly payment and don't want the temptation of open credit accounts. In contrast, if you wouldn't even be able to afford monthly payments under a debt management plan, you may need to consider more serious measures, such as bankruptcy.\n*   **It's not free.** Debt management plans typically have a setup fee of $50 and monthly fees of about $25, and plans typically last three to five years. If you can find a cheaper alternative, it may be worth it. Note, however, that credit counseling agencies may waive their fees if you're experiencing serious financial hardship.\nIf you're still not sure whether a credit counselor is right for you, set up a consultation with one to get their perspective. While debt management plans cost money, the advice counselors give is free. END