If you or someone you know suffers from problems of severe debt, my advice is to see about enrolling in a debt management plan. These plans are an organized way of paying off any outstanding debt through monthly deposits to an agency. These agencies then distribute those payments to the creditors for debts that need it the most. Through a debt management plan, you also receive the benefit of either reduced or even no finance charges on your debts.

You do need to be careful when choosing a debt management agency. There are a number of less than reputable ones out there who only want to make money and not help you. This is why it is so important for you to know as much as you can about finding the right agency that suits you.

If you have considerable debt problems, here are a few easy steps to follow to get yourself set up with a debt management counseling agency:

• First you should find yourself a respected credit counseling agency. Don't be fooled by a company bragging how they are nonprofit. That still doesn't mean they are a legitimate credit counseling organization. Contact the Better Business Bureau to see if they have any open complaints against them that still isn't resolved.

• Once, you've completed the background checks, schedule a meeting with the counseling company to learn about what types of services they provide to their clients. Do they offer things such as credit counseling and financial education? Find out how they keep personal information secure and what type of training backgrounds do their employees have. It is also important to ask how their counselors are paid since they should they be paid bases on the number of services you register for.

• Schedule a meeting or initial sit down with a counselor. The meeting should entail going over your financial situation for the first hour and then the remaining time coming up with a personal plan on where to go from there. You will be paying a monthly sum to the consumer counseling agency and then is used to pay your creditors. Your debt management plan should include all fees you'll be charged. They should be within reason as well or find a different counseling company. Finally, make sure you have everything in writing before signing any contracts.

• Ask your creditors if they will accept the debt repayment plan your debt counseling company put together. While you're at it, you can see if they would agree to a lower interest rate for you or even waive certain fees.

• There is nothing wrong with double checking the work of your credit counseling agency such as verifying that the correct payment amounts are being made according to what was agreed upon in the debt management plan. You can do this by reviewing and checking over the transaction receipts of your creditors and the credit counseling agency.

• With the help of the counseling agency, set up a budget for yourself including all incomes and fixed expenses. Whatever money is left over, is to be used things like food, clothing and gas.