If you are in over your head with debt and do not know which way to turn, it’s time to get some help. If the amount that you owe each month exceeds how much is available to pay, it becomes impossible to keep going. There are options that exist and learning more about them might help you break this vicious cycle and get yourself on track financially. One of the first steps to take is to look into credit counseling.

The term credit counseling refers to helping borrowers that are in over their heads successfully navigate their way out of debt. Credit counseling has existed within the United States since 1951. The credit card companies created The National Foundation for Credit Counseling during that year. The assistance offered was enhanced in 1993 with the creation of the Association of Independent Consumer Credit Counseling Agencies and then the American Association of Debt Management Organizations. Each of these groups were designed and created for the sole purpose of assisting and monitoring of the credit counseling industry.

Credit counseling may have been in existence since the 1950’s but it was not until the explosion of credit cards and consumer debt in the 1990’s that the demand for credit counseling accelerated. At one point there were over 1000 credit counseling agencies. However that number is now less than 500.

Some people have the misperception that credit counseling involves simply talking with a person one on one and then leaving with a plan after having to pay some form of a fee. That assumption is not at all inline with what credit counseling companies do.

To start with they work with you through your debts and what is owed as well as monthly payments. Your counselor also works with the creditors in working out more manageable payments for you. That includes reduced payments as well as a lowering of interest rates. The interest rate reduction component has become a much bigger portion of the work in the last few years with skyrocketing interest rates by creditors for those that fall behind.

The end goal of both counselor and borrower is to reach a doable level of payments that allow the consumer to meet their needs as well as make payments to all their creditors. And while most times this is successfully completed, the borrower needs to realize that it is unlikely that they will be able to keep their existing credit cards or be eligible for new ones during this time period.

While many credit counseling companies belong to one or more of the supervisory agencies, there are some that do not. So when looking for a solid credit counseling plan, make sure that you choose one that is licensed and a member of one or more of the following associations:

· The National Foundation for Credit Counseling

· Association of Independent Consumer Credit Counseling Agencies

· American Association of Debt Management Organizations

Each of these groups make sure that their members provide solid ethical counseling and assistance.

Finally, do not worry about how to pay for your credit counseling. There is no cost for the consumers that are using the services. Any fees that are due are paid by the creditors to the credit counseling group. There is a percentage that is taken out that ranges between 4-10% usually.

Credit counseling is the first step towards getting on the road of financial stability and balance. By using a credit counseling group, you get the benefit of their experience and knowledge in creating a plan that will take care of your creditors and eliminate your debts.