Credit counseling companies can help debtors, especially if you feel you do not have the discipline to tackle your own debt payoff plan. They can help stave off creditors as you work on a payoff plan, including working on consolidation of unsecured accounts (credit cards and/or medical bills), stop fees from accruing, stop collection calls, lower payments and reduced interest rates. There is a tradeoff with monthly administrative fees, longer payment terms and time spent in mandatory credit counseling or seminars. Contact a reputable consolidation company (the National Foundation for Credit Counseling can assist you; 1-800-388-2227).

Realizing that disciple is the key to good financial management is your first best move. While there are many very good books and websites that will help you establish a budget and create steps to help you get out of debt, you must have the discipline to follow through. If you feel that you need assistance from a credit counseling company you should research them thoroughly before you engage their services. A credit counseling agency should provide you with budgeting and money management advice, negotiate with your creditors to lower or eliminate fees, extend the term of your loan and lower the interest rate you are currently paying on those loans. Begin your search by learning which agencies in your area are accredited by either the National Foundation for Credit Counseling (NFCC) or the Association of Independent Consumer Credit Counseling Agencies (AICCCA). Once you’ve narrowed down your search to a few agencies, check with either your state Attorney General’s office or the Better Business Bureau to see if complaints have been filed against any of those agencies. Your next step is to call these agencies to learn more about their services. A good place to obtain a list of questions you should ask is on the Fiscal Fitness section of the Federal Trade Commission’s website: www.ftc.gov /bcp/conline/pubs/credit/fiscal.

Credit counseling services can help you get control of your debt and help you negotiate terms with your creditors if that is needed. They can also help counsel you on the use of credit and help you manage credit better. The first step to avoid credit problems is to establish and live by a budget. Most people fly by the seats of their pants and spend at will. They hope that at the end of the day they will have enough money to pay their bills. For many this strategy does not work! Credit cards make impulse buying easy. You see something you want and you pull out the plastic magic! Another good piece of advice is before buying anything more than a $100, delay your decision by just one day and see if you still want it. Many times, you will find that after a day has gone by the desire to buy has diminished. If you truly need credit counseling, then make sure you go somewhere reputable and not somewhere that is just looking for a fee.

I’ll give you a similar answer I gave to a previous reader. So now you know that you’re not the only person in the world who has a problem with debt. If you are simply overspending, you have a behavioral problem, and you need to deal with it immediately. I hope taking the time to write the FNP for advice is your first step to changing your situation. Consider doing the following: 1. Identify and make a list of all of your debt. 2. Identify and make a list of all of your savings and income available to retire that debt (if this is sounding like a budget there’s a reason). 3. Don’t put your head in the sand and ignore the problem, no matter how big it may be. If you are in debt and owe a company(s) money, they are not going to forget about little old you. 4. Talk to your accountant about the benefits and potential pitfalls of using your home equity line to pay off your debt. Another option that is sometimes seen as taboo, but may make sense, is asking a family member for a loan. If you have strong family relations and are not a “spend-aholic,” they may help you in your time of need. By the way, if you are a “spendaholic,” they probably won’t, and that tough love may be just what the doctor ordered. Also, I suggest the loan be a formal agreement with things like length of loan and interest rate spelled out. If you have to seek the help of a credit counselor or a debt management plan, make sure you get all of the information you can on the company from the Federal Trade Commission (ftc.gov) and Better Business Bureau (bbb.org). Good luck!